Am I in a hopeless situation now??


Hello all,
As embarrassing as it is to admit, at this point in time I have been unable to pay back taxes I've owed since tax year 2007.
I had previously contacted the IRS and worked out a monthly payment schedule, but I've fallen behind on bills, and my business has been suffering greatly. And for the past 5 months I have been unable to pay anything. Today in the mail I received IRS Form 8519, Levy of my bank account. Is that it? Am I officially screwed with no income for me and my family to survive since the IRS is taking everything? Is it too late for me to try and negotiate a reduced monthly payment?
Please any and all thoughts are greatly appreciated.
Thank you.
Reply to
Shhhh

No!! You are not a hopeless case. IMMEDIATELY, call the number shown on your letter. Tell your story and ask them to stop the levy. In my experience, I have never known them to deny that kind of request. You have options and the agent will help you as much as possible. You may even be able to make an offer in compromise, likely with the help of a tax professional, to reduce your obligation.
Reply to
John Fisher

In article ,
I often listen to a radio that heavily advertises services to deal with the IRS. The advertisers claim to be able to be able to wipe out most of the tax debt. They claim that they have the expertise to deal with the IRS while the IRS will tear the unaided taxpayer to shreds.
Impression of the IRS is not all that bad. My guess is that if you try to deal rationally with the IRS, you will be treated rationally by the IRS. But I never owed large amounts of tax or was in other forms of deep doodoo.
I am curious however, do these services perform a legitimate representation or are they just another scam?
Bill
Reply to
Salmon Egg

text -
.?Let the buyer beware!!=:)
Back in 2004, IRS Commissioner Mark Everson issued this caveat:
?We are increasingly concerned about unscrupulous promoters charging excessive fees to taxpayers who have no chance of meeting the program?s requirements,? ?We urge taxpayers not to be duped by high- priced promises.?
If one believes one might qualify, it would be best to consult a local preparer who is familiar with the process, who can study the individual case, and who will give an honest appraisal with regards to potential success.
The statistics, I've observed, indicate that only about 25% of Offers in Compromise are successful.
Reply to
John Fisher

I have had luck with having the IRS determine my clients in a "currently not collectible" status. This stops all leins and levies, and they stop sending you collection notices. You would still owe the taxes, and the interest would continue to acrue however if you remain on this status long enough, the statute of limitations continues to run, and the IRS will no longer be able to collect it.
To have the IRS consider you "Currently not Collectible", you must fill in a shortened 433 form (433-F)which shows your income and expenses and an installment agreement form 9465 showing a $0 installment due to the calculations on the 433. Before I did any of this, I would call the IRS at the number on the latest letter and ask them how best to qualify for this status. It may be that your current installment agreement will cause an issue.
If approved, periodically, the IRS will re visit your status to see if you are more capable of paying, but this is merely refilling the forms for current conditions. You should have an Enrolled Agent or other professional help you with this process, but it is significantly more likely than a Offer in compromise, which are approved less than 30% of the time, if recent press clippings are correct.
best of luck
Reply to
Tyler Franks

*********************************************************************** Not sure how much amount is under dispute, and financial hardship you are in... but one website that might give u an opinion on options available to you is taxlifeboat.org
Reply to
candaexpress

STOP! CALL AND SEE A LOCAL TAX PRO, preferably an Enrolled Agent. EAs are tax representation specialists by definition.
There are two kinds of levies - Static & Dynamic.
A static levy is sent to banks with instructions to hold all monies in the identified account, notify you, and give you a period of time to resolve the matter. If you don't resolve the matter and get a release from the IRS the bank has no choice but to send whatever money was in your account at the time the levy was received to the IRS.
Please read that last paragraph AGAIN, then read it a third time.
Bank levies are STATIC Levies - the attach to the money IN THE ACCOUNT WHEN THE BANK GETS THE LEVY, AND NOTHING MORE. So if you had $50 in the account on Tuesday, when the bank opened the letter and put the hold on your account, then on Wednesday you deposited $250 MILLION in Lottery Winnings, the bank CAN ONLY send the IRS the $50 was in the account when they got the levy notice - NOTHING MORE.
Dynamic levies are different - these are sent to PAYORS, usually employers but they can be sent to others who pay you regularly. Typically, if your a contractor or subcontractor of some sort, the IRS will look for 1099s issued to whomever they are issuing the levy against and send them a levy notice that says "forward ALL future payments to ABC Co. to us until EITHER you've sent us $x,xxx.00 Dollars OR until we tell you to stop." These levies go on and on and the IRS intercepts ALL monies being paid you to now and in the future.
You NEED to meet with a tax professional who specializes in Taxpayer Representation. This may be a CPA, but not all CPAs do tax work. EAs, by definition, are taxpayer representatives. BUT not all EAs represent all kinds of taxpayers. You'll need to make some calls and ask some questions. Start with
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- the National Association of Enrolled Agents. Their web site has a link where you can search for EAs in your area.
Someone needs to work with the IRS on your behalf - NO ONE should try to handle the IRS for their own case (remember the old axiom "an attorney who represents himself as a fool for a client."). We can't handle our own cases, we're too close, we think emotionally and not logically and we're tempted to say more than we should, which almost always hurts us long term. It simply is NOT a good idea to deal with the IRS yourself - at least not without talking to a pro first.
You may be able to get on Uncollectible Status, you may qualify for an Offer In Compromise, you may be able to renegotiate your installment agreement. There are even ways to get payroll trust fund taxes resolved. BUT the average person has NO IDEA where to even start. You NEED professional help and you need it sooner rather than later.
Good luck, Gene E. Utterback, EA, RFC, ABA
Reply to
Gene E. Utterback, EA, RFC, AB

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