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IRS garnishment and unfiled taxes...help.

Portland, OR |
Filed under: Debt Tax law

If the IRS is garnishing my wages for unpaid (and unfiled) taxes for 2009 and 2010) for the total of about $6900 bucks. Is that what I owe them? After that is paid do I owe them any additional monies for those years or is that it??

I plan in the next few weeks to get all 4 years prepared and filed, obviously I also owe for 2011 and 2012 so not sure what that will add up to.

But for the 2 years im being garnished for, is that it?

Attorney Answers 3

Posted

There is no possible way we can tell you what your tax liabilities are. You need to see a CPA or tax accountant and get straightened out.

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Asker

Posted

I understand 2011 and 12 are up in the air for what is owed. But meanwhile, the IRS is garnishing the wages for the amount stated above. I am assuming they filed a substitute return to get a estimate of what he owes. Therefore there is about $6900 they are garnishing for. What I am asking is when we actually prepare and file those old ones from those years, will there be more owed or is the IRS garnishing for whats owed for those years?

Diane L Gruber

Diane L Gruber

Posted

Who knows? The garnished money first be applied to 2009 taxes. If they are "paid off." for 2009, it is likely you will actually "get a refund." BUT, penalties for not filing on time could eat that up. Sorry.

Bruce Givner

Bruce Givner

Posted

Scott is correct.

Diane L Gruber

Diane L Gruber

Posted

When any type of payment is received by the IRS they always apply it to the oldest tax year liability.

Posted

For 2009 & 2010, the IRS files (based on the W2s and 1099s they received) whatever the highest possible liability could be for the years they assess. This is done in some part to motivate you to actually file the taxes. When you actually file these taxes, in many situations (but not all) you may actually owe less than the unfiled / unassessed taxes. The best advice is to get your taxes filed and to continue to file every year moving forward, preferably with a tax professional's help. Best of luck.

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Posted

I just realized its the state who is garnishing the wages, not the IRS. So tomorrow we have an appointment with a tax professional to get them started. We came up with a lump sum to pay some of the debt off, I am assuming the State is best to pay first since they are most difficult to work with. And get a payment plan started with IRS I suppose....since they are not garnishing yet.

Diane L Gruber

Diane L Gruber

Posted

There will be interest for the IRS IF you owe for 09, 10, 11. If you see a tax preparer NOW your 2012 should be filed on time.

Bruce Givner

Bruce Givner

Posted

Mr. Adams is correct.

Posted

$6,900 is what the IRS says you owe them based on the information available to them. That may or may not be true, and nobody here will be able to tell you without a lot more information.

You can stop the IRS from garnishing your wages, but to do so, you'll probably need to agree to pay at least some of the back taxes one way or another. First you should file returns for the missing years and hopefully lower the underlying tax owed. You might end up owing nothing, or owing more. I really can't say at this point.

After filing returns, you should weigh your options and, depending on your financial situation, try to enter an Installment Agreement (a monthly payment plan), make an Offer in Compromise (settle the debt for less than the amount owed), have the IRS declare the debt uncollectible, or pay in full. I have no way to predict what options will work for you. Speak to a licensed tax professional and discuss your situation in more detail to be certain of what options are available.

Robert Hoffman is a tax attorney licensed in California. The information presented here is general in nature and is not intended as a substitute for legal advice. This posting does not create any attorney-client relationship with the author. For competent advice about your particular situation, consult your own attorney.

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Diane L Gruber

Diane L Gruber

Posted

The State of Oregon is more aggressive than the IRS. IF your remaining tax liability is "too high" and you have other debt, give me a call to discuss a possible Ch.13 bankruptcy.

Bruce Givner

Bruce Givner

Posted

Robert is correct.

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