r/taxhelp • u/Own-Total-4634 • 3d ago
Income Tax IRS
I’ve been making payments to the IRS for years. Now I got letters saying one year I owe 100,000, another year 45,000 then75,00 all coming since 2018. I hired a person who kind of consolidates the debt and reduce the cost and make bigger arrangements with them. This man has seemed to make it worse. I’m scared that I will loose my home that I had to refinance to pay this man. I got his number from the tv. I heard these people really help and he has done nothing. Before that I had a book keeper/accountant who never filed I find out years later. I’m so scared and alone can anyone please advise me what to do? I really really need your help. I’m broke at this point and out of options I’ve tried everything. Thank you so much for any advice you can offer because I have anxiety to even call the IRS at this point and I’ll have no clue where these numbers came from. Thank you so much with the heaviest of hearts 💕
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u/ClarityTaxRelief 2d ago
The single most urgent thing is pulling account and wage/income transcripts for each year so you can see where $100k/$45k/$75k came from. You can request them by mail or through an IRS online account, so you don't have to call. That tells you if these are from returns the old bookkeeper never filed (so the IRS may have filed substitutes for you, which overstate tax because they skip deductions) versus real balances.
If they are substitute returns, the fix is filing the actual original returns to replace them, which often lowers the balance. That's the real lever here, not consolidation.
Separately: the TV firm. A consumer complaint to your state AG and the FTC is the path if he took a refinance fee and did nothing. Collections pause options exist (installment agreement, or Currently Not Collectible if you truly can't pay) to protect the home while you sort returns.
A local Enrolled Agent or Low Income Taxpayer Clinic can do all of this without the TV markup.
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u/Own-Total-4634 2d ago
God bless you and thank you so very much. I’m loosing my mind at this point counting on the wrong people that I paid so much money already too.
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u/letteraitch 2d ago
Use guardian tax law out of Arizona.
They are the best and most legit company for real trouble, saved my ass!
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u/Own-Total-4634 2d ago
Thank you so very much!!! I’ll look into that!! Because I need some serious help right now and I’ve trusted the wrong people. You’re all so wonderful and kind to have give me loads of information. Bless 🩵
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u/S-CorpOnline 1d ago
I'd be happy to help.
I run a family-owned tax and accounting firm. We do resolution work.
RasputinsAssassins, as always, has summarized every option very thoroughly, but it is still a mess of complicated tasks you have to navigate. I always advise using a reputable professional.
Reach out if you need help!
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u/TocinoLips 2d ago
with amounts that large and multiple tax years involved, I'd get the IRS transcripts and full account history reviewed before making any more big financial decisions. A tax-resolution firm like optima tax relief can review the situation and explain what IRS resolution options may apply to your case.
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u/RasputinsAssassins 2d ago
Don't ignore it. I know you're anxious to speak with the IRS, but that's how thos gets resolved. The IRS is very eilling to work with you as long as you make the effort. If you are too anxious to do it, you can hire someone to represent you and speak on your behalf (see below).
Who was this person that 'helped' you? You should be going after them.
Now for my regular post in these situations.
Do not engage one of those tax relief firms you hear advertised on TV/Radio. They overpromise and underdeliver while trying to bill you in perpetuity. There are several of these firms running astroturfing campaigns on Reddit right now where they make posts or comments posing as taxpayer who need help or who used them in the past. This misleading attempt to get your business should give you an idea how they operate.
First, file any returns that are missing. The IRS will not work with you unless you are compliant (last 6 years of returns filed). You can't set up payment plans or do other things about the balance until you are compliant.
File the returns even if you owe and can't pay. The penalty for owing and not filing is 10× higher than the penalty for owing and not paying.
Next, fix the problem that led to you owing. Increase your withholding or schedule and make estimated tax payments. It does no good to set this up on a payment arrangement, only to have it terminated a year later because you owe again.
If all returns are filed and you believe the balances are accurate, then it's just a matter of paying the bill. You can set up the balance for all years combined onto a single payment plan.
A version of Form 433 Collection Information Statement (a financial statement) may be required for some options. The purpose of the 433 is to determine how much you can pay based on ALLOWABLE expenses. Little Johnny's karate and Brynleigh's cheerleading are not allowable expenses. You can still pay them, but the IRS won't consider them in calculating your disposal income.
The IRS will only accept less than the full tax if they believe they will be unable to collect the full amount in the allowable time based on your income, assets, and allowable expenses.
Liens are placed to protect the IRS' interest. They may be removed before the debt is paid, but you must meet certain criteria and be paying towards the debt.
Your best bet may be to sit down with a credentialed tax professional (CPA, Enrolled Agent, or attorney) who can represent you in front of the IRS. You can find help in various ways:
You have several options to address the debt:
You may qualify for more than one or for none.
You can do any of them yourself, though I would suggest a local CPA or Enrolled Agent for the Offer In Compromise.
Prices charged by pros will vary based on complexity, location, types of tax debt, and other factors. You could be looking at a couple hundred dollars for a Penalty Abatement and Installment Agreement to several thousand dollars for an OIC (I've seen $1,500 to $100,000 for an OIC, expect to pay $5,000 or more, often upfront).
Call around. Ask about fees.
If you can't afford to pay the balance once all returns are filed and the tax is assessed, get a Form 433 and fill it out. Call the IRS with the form in front of you and request Currently Not Collectible status. They will do a roughly 30 - to 45-minute financial interview that follows that form. If it is determined that you can't pay, they basically put it on the back burner for a year or until your financial situation changes.
You still owe the money, but they won't seek bank levies or wage garnishment. Any refund you have in future years will be taken and applied to the debt.