QUESTION: I filed my 2007 tax return on October 15, 2008 and I owed $50,000. I don’t have the money to pay any of my taxes with my return. What will happen when the IRS receives my tax return. Will they immediately come take my house? ANSWER: If you filed an extension, your tax return…
Category Archives: Tax Q&A
Tax Lien’s Impact on the Sale of my House
Question: I owe the IRS about $60,000 and they have a filed a tax lien in the county where I live. Because of the national insecurity due to the upcoming election, the banking crisis, and Wall Street blues I desperately need to sell my house. I would like to just refinance and take equity out…
I Stopped Paying My Taxes, Now What Are My Options?
Question: I stopped paying taxes in 2001, when my long-time employer bankrupted. I have worked on and off as a sub-contractor since earning about $30,000 per year but have no assets of value. I’m getting letters from the IRS. What can they do except throw me in jail? Answer: Thanks for your question. I would…
Will High Medical Bills Help my Offer In Compromise
Question: I have a lot of medical bills that I have to pay each month because of a surgery I had several years ago. Will those medical bills help my offer in compromise? Answer: Yes. Medical bills are one expense that the IRS will allow 100% of what you can prove you actually pay. I…
Paying Estimated Tax Payments
I work with a lot of taxpayers who get in trouble with the IRS because they do not make their estimated tax payments. Some times it is because they are real estate agents, independent contractors or otherwise self-employed and they are payed directly by customers and there are no income taxes withheld by an employer. …
What Happens to My IRS Payment Plan when I Owe More Taxes
QUESTION: I filed an extension of time to file my 2007 income taxes but I did not pay anything by April 15, 2007. I expect that I will owe more money when I do file the return. I am currently on a payment plan with the IRS for prior year tax liabilities. What will happen…