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I had brain-surgery,..twice. Now I'm on S.S. I bought a trailer with some of the money recieved,..the rest went to c/support. Now the irs is saying i owe money for back taxes,(mostly penalties) from my unpaid taxes(i was self-employed). Can they take my home?
You can try writing the IRS and explaining, perhaps including your medical records.
Usually the statutes contain "reasonable cause" clauses pursuant to which you can have penalties waived.
So write to them, pay any unpaid income tax owed plus interest, but request waiver of penalties, including medical records to justify that you had reasonable cause for not paying income taxes on time for previous years.
They can lien your property and could theoretically force the sale of your home and take the proceeds. Don't ignore them - be pro-active. Contact their Taxpayer Advocate Office and try to negotiate a settlement: Taxpayer Advocate Service (http://www.irs.gov/advocate/ - broken link)
Also, if your illness had an affect on your failure to file and pay taxes, you may qualify for financial disability.
From 35 years in the IRS most in the Taxpayer Advocate Office, what the IRS needs is information on your current financial status. They dont "know" you are living on SS and with your info might just mark your case as "Currently Unable to Pay".
The interview on the phone will be structured to ask for the full amount first, and then whether you can make Installment payments. They may or may not stop talking when you tell them you have only SS income. Regardless, the assistor needs to fill in all the blanks (more or less depending on the $$ amount you owe). Be patient and have all your info available. Remember you want them to mark the account as currently uncollectible and need to give them whatever they need to do this.
They wont take your house.
Just go ahead and call the number on your latest notice or the general IRS number. More reading info can be obtained at www.irs.gov.
According to the Social Security FAQ, the IRS can garnish only 15% of your Social Security check each month, for back taxes owing, until the tax debt is paid.
Yesterday I sent them the last of my $,..I had promised them with the "offer in compromise" i had filed.
I sent it to sac. california,...the address I was given.I had previously sent a copy of a "MRI" proving I had a
nice sized tumor in the middle of my brain,..stating also that for me to pay them all I owe them at once,..I'd be hardshipped,..and I would!,but I'm realizing that the Irs is just a machine to collect tax-revenue.Thanks for your response.
Well, if you already have an offer in compromise, sent them the final payment, and I assume you met the other terms you agreed to, why did you bother to ask the original question? Or is it you cannot meet the terms?
If you have not met the terms, the consequences are laid out in the signed offer. However, it is still unlikely they will throw a sick person out of their home. Unless your MRI was sent with a clear letter from you explaining what is going on, it is possible they would not understand. If you have any further confusing communications, call the Taxpayer Advocate for assistance even if it is just to provide information and clear up what is going on.
So why didn't you withhold money when you were self employeed to pay the taxes?
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