TAXMAN Posted November 28, 2014 Report Share Posted November 28, 2014 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. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted November 29, 2014 Report Share Posted November 29, 2014 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. 3 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted November 30, 2014 Report Share Posted November 30, 2014 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? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted November 30, 2014 Report Share Posted November 30, 2014 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. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted November 30, 2014 Report Share Posted November 30, 2014 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. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted December 1, 2014 Report Share Posted December 1, 2014 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? 1 Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted December 1, 2014 Report Share Posted December 1, 2014 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 Quote Link to comment Share on other sites More sharing options...
Lee B Posted December 1, 2014 Report Share Posted December 1, 2014 I would recommend the OIS route, it resolves it. Rich There are so many acronyms nowdays. What is OIS ? Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted December 2, 2014 Report Share Posted December 2, 2014 There are so many acronyms nowdays. What is OIS ? Sorry, That was OIC.. Offer in Compromise. Rich Quote Link to comment Share on other sites More sharing options...
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