Have a Tax Question? Ask a Tax Expert
Thank you for contacting me about your Tax issue. I will work hard to help you understand the issue clearly.
I'm not sure I understand correctly, but have you filed all of the tax returns that are past due as of now?
If so, there are programs that can provide you relief, either temporarily or permanently.
Assuming you are current on all returns, I have a few questions:
1) Do you have 200K in net worth (not including this debt)?
2) In what general range is your income (if you don't mind me asking)? (Nearest 25K is close enough)
3) How many people in your family on on your 2012 tax return?
Yes, all tax returns are filed. We are delinquent in paying. We have paid part of 2008, and the 200k represents 2008-2012. We have paid or are paying all VA taxes. Our home has POTENTIALLY just about $200k - advised that by the time we refinance it might not generate a large enough chunk of money to cover the debt. Just recently we are making an estimated $28k/month. We had been earning $15k/month and then lost 80% of our business when the economy tanked. Took all of our savings and assets to stay afloat while we rebuilt. There are 2 of us in the family - but we also have large expenses for caregiving my 89 yr old Mother.
No need to apologize at all! We recognize the severity of the situation we are in and truly want to put this behind us. I also understand the IRS has no way to understand the whys and whatfors of the situation. I had determined $10k to be the amount we would most likely be asked to pay on a monthly basis and am fully prepared to come up with this. Most of the reason 'why' lately has been caregiving for my Mom and 96 yr old Aunt. Assisted Living isn't cheap and Medicare and supplemental insurance doesn't cover everything and the supplemental plans are pricey as well.... Thanks for you honesty and it makes me feel better to know that my current folks aren't overlooking any potential ways to reduce the penalties or interest. You sound like an honest, straight shooter and I highly value those attributes. If you practiced in the VA area I'd go to you and wish you every success.