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I owe tax federal - $68,000 state - $40,000. I am asking…

Customer Question
I owe tax federal -...
I owe tax federal - $68,000 state - $40,000.
I am asking hardship, I can not pay. They are asking offer more than $0. If rejected, they use my offer toward payment.
What is the ideal amount to offer?I have credit card debts that I paid legal fees about $50,000
My only income temporary maintenance $6,600/mo. ( just reduced from $13,000/mo. )
My rebpnt $5,650/Mo.
Monthly expenses $16,000/Mo.How much I should offer?
Submitted: 1 year ago.Category: Bankruptcy Law
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Answered in 2 minutes by:
7/1/2017
Bankruptcy Lawyer: Legal Eagle, Lawyer replied 1 year ago
Legal Eagle
Legal Eagle, Lawyer
Category: Bankruptcy Law
Satisfied Customers: 13,233
Experience: Licensed to practice before state and federal court
Verified

Hello! My name is ***** ***** I am a licensed attorney, admitted to practice in state and federal court. I'll be here to help today! Do you mind if I take a moment to review your question?

Please keep in mind that our conversation does not include an attorney-client relationship and this is for general information purposes only. By the way, the system will automatically ask for a phone call. I am happy to speak with you, but by no means are you required to accept it.

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Bankruptcy Lawyer: Legal Eagle, Lawyer replied 1 year ago

I'm sorry to hear about your situation. It seems like your expenses out pace your income significantly and there is very little left over to pay what is left on the tax burden. So, the first thing that I would recommend doing is making sure that you are working on reducing your expenses to make your life a bit more comfortable. With that said, if they are wanting $5,650/mo, keep in mind that it will knock out nearly 50% of your balance within the year. For most creditors, they are usually willing to accept 50% of the balance. The IRS isn't much different. With that said, I would recommend an offer of at least 50% of what is owed, or $2,825 per month until the balance is paid in full. Cutting it in half will progress you toward paying the debt and it will help you maintain your standard of living in the meantime.

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Bankruptcy Lawyer: Legal Eagle, Lawyer replied 1 year ago

Follow up questions are free, so please feel free to ask away. You can also click here in the future to request me individually. If you don’t have any additional questions, were you satisfied with my service today?

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Customer reply replied 1 year ago
I see typo $5,650/ mo. Is my apartment rent.
Bankruptcy Lawyer: Legal Eagle, Lawyer replied 1 year ago

Oh, no I certainly understand. My recommendations are the same for you. Did you have any follow up questions for me?

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Customer reply replied 1 year ago
Are saying 50% I should make offer?
Not less?
They are saying if they don't accepted my offer, they will use offered amount toward payment.
Bankruptcy Lawyer: Legal Eagle, Lawyer replied 1 year ago

Yes, I am recommending offering 50% of the debt:-)

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Customer reply replied 1 year ago
They don't accept less than 50%?
Bankruptcy Lawyer: Legal Eagle, Lawyer replied 1 year ago

Well, if they don't accept less than 50%, one little known, but very effective tool that lawyers use when there isn’t a law that they can rely on to support their position is called principled negotiation. All this means is that you are looking to get something done on the basis of principles, even if you can’t find a law to support you. It takes the anxiety out of dealing with the other side because you’re focused on the facts, not each other.

Here are some simple steps you can follow:

  1. Figure out what the other side’s interests are (saving money, saving time, etc.?);

  2. Think about what your interests are (saving money, saving time, etc.?);

  3. Come up with 2 to 3 reasonable and objective ways to solve the problem;

  4. Present it to the other side;

  5. If the other side rejects, ask them, “Is there a reason why you do not feel it is necessary to negotiate?”

Of course, these are just building blocks to get the other party to help solve the dispute. Believe me when I say that good lawyers use this technique all the time to keep things out of court. You’ll find that it is very effective even with the most stubborn of individuals.

Did you have any other questions for me? If not, please feel free to rate your opinion of my service today.

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Customer reply replied 1 year ago
Thank you, ***** ***** asked " offer " on state tax.
But IRS., I was just asked to send documents that shows my hardship. Do you think they forgot to tell me? Do you think I still have to make offer?
Bankruptcy Lawyer: Legal Eagle, Lawyer replied 1 year ago

Usually, the IRS tends to be very flexible with people and their financial troubles. However, I don't believe that they forgot. If you have a contact with the IRS with whom you have been communicating, I would see if they are willing to settle on your amount for the federal taxes as well. Generally, the IRS will settle the debt, so long as they are guaranteed payment.

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Customer reply replied 1 year ago
I spoke with IRS., after I hold long more than 40 min. She did not say to make an offer. She asked financial questions and asked me 3 documents to send via fax. I asked her that how long me to receive answer, she said, weeks.What do is I will be receiving?New York State tax form has asking " offering ", but not IRS did not ask me to fill out form, but 3 documents to send.
Bankruptcy Lawyer: Legal Eagle, Lawyer replied 1 year ago

Hi, I'm sorry you had to be on hold with them for so long. I'm sorry to hear too that the IRS is not looking to settle. Keep in mind that they aren't required to, but they often do if there is going to be some financial hardship involved. Unfortunately, I am not intimately familiar with their specific processes regarding offering these things as it is on a case by case basis and probably governed by internal policy. My recommendation would be to follow the steps I had recommended previously and either make an offer on your own or claim a financial hardship.

If you don't have any other questions, I would sincerely ***** ***** positive rating from you regarding our interaction. You're welcome to save me as a favorite as well. Thanks so much.

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Customer reply replied 1 year ago
I'm going to original question that what do I get by sending financial documents to IRS.?
After I paid rent, I have about $950/mo. left for everything, food, utilities. Transportation, dog foods..plus, I owe tax about $100,000 ( $50,000 -2016 ), legal fees, credit card debts $50,000.Do IRA still ask me to pay tax?Can I be free of tax? I paid off 2014, 2015 in full even I carried debts.
Bankruptcy Lawyer: Legal Eagle, Lawyer replied 1 year ago

Hello, I'm going to have to opt out and let another expert take over this question. Thanks so much.

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Bankruptcy Lawyer: attyadvisor, Attorney replied 1 year ago
attyadvisor
attyadvisor, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,872
Experience: 30 years of Bankruptcy
Verified

I am a different Attorney and it will be my pleasure to assist you. The IRS is not required to agree to settlement, however, they are more likely to work with you if you have an Attorney. Can you tell me where in New York you reside so I can provide a link for local Attorneys that provide FREE consultations in your area?

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Customer reply replied 1 year ago
NYC.
Customer reply replied 1 year ago
I am asking NY state tax for hardship as well.
It is too much me to deal with, form dtf-4.
State asked me to make " offer " - need more than 50%?How much is the lawyer's fees for both state and federal?
Bankruptcy Lawyer: attyadvisor, Attorney replied 1 year ago

Attorneys fees vary based on experience. You can probably make a lower offer with an Attorney involved.

I can provide a link for Attorney that provide FREE consultations you can see what they recommend and how much they charge.

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Bankruptcy Lawyer: attyadvisor, Attorney replied 1 year ago
Ask Your Own Bankruptcy Law Question
Bankruptcy Lawyer: attyadvisor, Attorney replied 1 year ago
Ask Your Own Bankruptcy Law Question
Bankruptcy Lawyer: attyadvisor, Attorney replied 1 year ago
Ask Your Own Bankruptcy Law Question
Bankruptcy Lawyer: attyadvisor, Attorney replied 1 year ago

Please do not hesitate to ask me any additional questions that you may have with regard to this matter. It would be my pleasure to continue to assist you.

If you would be kind enough to rate my service positively so I will receive credit for my work from the site I would appreciate it.

You may not be familiar with how the site works. The Attorneys to not receive credit from the site for their time or with customers unless the customer provides a positive rating. We answer your questions in good faith, hoping for a good faith response regardless of whether the law is in your favor or not. If you were unhappy with my service please let me know that you would prefer to work with another Attorney and I will opt out. Thank you for your consideration.

Thank you for using JA! We appreciate your business.

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Customer reply replied 1 year ago
If I do myself, do I have to offer more than 50%?
Bankruptcy Lawyer: attyadvisor, Attorney replied 1 year ago

Offer whatever you can reasonably afford.

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Customer reply replied 1 year ago
Reasonable means?As I wrote previously, support I receive $6,600/mo. ( only income ), Rent $5,650/mo., credit card debts over $30,000, tax $46,000 - 2016, legal fees $40,000.I have retirement $90,000 ( automatical court order not allow to spend )
Checking $15,000.
Bankruptcy Lawyer: attyadvisor, Attorney replied 1 year ago

I read your question. We are a general information site. Pursuant to the terms of service of the site the Attorneys are prohibited from entering into an Attorney/Client relationship with the customers. That is why I suggested, and provided, links for resources in your area. I have handled these matters on behalf of clients. The IRS is generally far more willing to make concessions on tax debt if the person is represented by legal counsel.

You may be unfamiliar with the terms of service. I am assured that you have agreed to the terms of service before I pick up your question. Let me provide the link for you.

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Bankruptcy Lawyer: attyadvisor, Attorney replied 1 year ago
Ask Your Own Bankruptcy Law Question
Bankruptcy Lawyer: attyadvisor, Attorney replied 1 year ago

This is a link for information on settlement http://www.nolo.com/legal-encyclopedia/can-you-really-settle-your-tax-debt-the-irs-pennies-the-dollar.html

This is the IRS link for an offer in compromise https://www.irs.gov/individuals/offer-in-compromise-1

Thank you for using JA. We appreciate your business.

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Customer reply replied 12 months ago
New York tax department asking three federal income tax returns.
Where can I get them quickly? On line? Is there fees?
Bankruptcy Lawyer: Legal Eagle, Lawyer replied 12 months ago

Hello! I am a licensed attorney, admitted to practice in state and federal court. I have a nearly 100% satisfaction rating so all that means is that you can count on me to help today.

Please keep in mind that our conversation does not include an attorney-client relationship and this is for general information purposes only. What specific questions do you have? By the way, the system will automatically ask for a phone call. By no means are you required to accept it.

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Customer reply replied 11 months ago
Where can I get three federal tax returns?
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