returns old

[TAXMAN]

Tp owes about 3k on 2008, 44k on 2007, 5k on 2013. 07 is the only one in collection and under lein. 4 years to statute death for 07. Would you advise tp to pay 08 and 13 and deal with the 07 by itself. Financial status indicates tp may only be able to pay at most $400 per month. BTW 07 was about 24k in tax rest is FTP penalty. TP has no borrowing capability. $ for 08 and 13 comming from grand parents.

[kcjenkins]

Yes, but have him be VERY careful how he pays the 08 and 13.  They need to be paid by check, with the year being paid clearly, carefully written on the check.  Court has ruled that IRS must honor that.  I'd make that a certified check or a money order.  

 

Example, in the "For____" space:

 

SSN #___-__-____ Form 1040 yr 2008

 

Any electronic payment you can not prove what year you intend to pay.

[Jack from Ohio]

I fail to see the purpose in paying 2013 ahead of the older balances.  If the money from the grandparents is a fixed amount, pay the amount on the oldest balance.  Then arrange a payment plan for the rest.

 

Am I missing something?

[kcjenkins]

I am assuming [yeah, I know] that he wants to get current and stay that way with just the one old debt, which he can make payments on.  New unpaid can jeopardize a payment plan.    

[Jack from Ohio]

I am assuming [yeah, I know] that he wants to get current and stay that way with just the one old debt, which he can make payments on.  New unpaid can jeopardize a payment plan.    

Owing over $44K will be tough to set up a payment plan.  Been there.  If he asks for all years with tax due to be part of the payment arrangement, new vs old will not matter. 

[Gail in Virginia]

I think the point might be to pay the new taxes before they get any worse, and let the statute run on the oldest.  Grandparents might be able to cough up enough to pay the newer years in full, but not have a chance on the oldest year.  Is he or she a candidate for OIC?

[Richcpaman]

You have a multiple step process here.

 

If you want to borrow money from GP's to pay the 2007 and 2013 liabilities, do as KC recommends and make the payments very plain as to what they are for.

 

Then, if you wanted to get into a payment agreement for the 2008 liability, it extends the statute.

 

I would recommend the OIS route, it resolves it.

 

Rich

[Lee B]

 

 

I would recommend the OIS route, it resolves it.

 

Rich

 

There are so many acronyms nowdays.

 

What is OIS ?

[Richcpaman]

There are so many acronyms nowdays.

 

What is OIS ?

Sorry, That was OIC..  Offer in Compromise.

 

Rich