I owe 100,000 to the IRS from 2007-2009 when I worked there…

Question

I owe 100,000 to the IRS from 2007-2009 when I worked there as a consultant. I
am a Canadian citizen and live in Canada now. I am paying off the debt on a
monthly basis without a formal agreement with the IRS. I filed for bankruptcy in
2010 in Canada and got discharged in DEC 2012. Can they come to Revenue Canada
and try to collect the debt or can they levy my wages in Canada?

Law.Hut · Accepted Answer

Law.Hut : Hello: Was the debt to the IRS listed by you in your
Law.Hut : Schedule of assets? Were they notified of the bankruptcy proceedings?
Customer: yes, we included the IRS in the list of creditors and deloitte the
bankruptcy trustee here in Canada sent the documentation to them. Then, every
time we got anything from the IRS at home, I would send a copy of the bankruptcy
papers to them by mail, sometimes certified. They never made a claim against the
estate. Then in Nov 2012, we got a letter from the IRS saying that the IRS debt
was not discharged by our Canadian bankruptcy so we need to pay.
Customer: I got a call from the IRS last week, so I called a tax attorney in the
US today and they said to me that I had to make an offer to pay to the IRS to
avoid them placing a levy on our salaries but they did not know if they could
since we live in Canada and we filed for bankruptcy here
Customer: I mean if they, the IRS, could place a levy on our salaries because we
live in Canada
Law.Hut : No, they cannot. The debt will likely still exist according to U.S.
law and could be enforced against you in that country. But they will not be able
to proceed to enforce against you using Canadian law, which is what would apply
if they want to garnishee your wages from a Canadian employer. The debt has been
discharged according to the Canadian bankruptcy and is o longer legally
enforceable here.
Customer: does it matter that when we included the IRS in the list of creditors
the amount that Deloitte set as the amount due was $1 because we did not know at
the time what was the grand total of the debt? Deloitte said that the important
thing was to include the IRS in the list and then with the statement of the IRS
we would confirm the amount.
Customer: If I am making the payments without a formal agreement from the IRS,
and they keep calling me or my work or my family or friends, is there anything I
can do to get them to stop doing that? I have replied to every letter they sent
with the bankruptcy info, I called them back when they left a message and told
them about my payments, I have updated my address with them every time I have
moved, I am not avoiding them, I guess is my point, would there be any thing I
could do to get them to stop?
Customer: And, could I get arrested in the US or crossing the border because I
have that debt and I have no official agreement with the IRS to pay it (even
though I am making the monthly payments)?
Customer: thank you so much for your help
Law.Hut : I agree with Deloitte. If they were advised of th proceedings and the
existence of the debt was disclosed, then it has been discharged.
Law.Hut : You have no obligation to answer their letters or calls or advise them
of your address. You could complain to the provincial government, but they will
not have any authority if the debt collectors are not located in the province.
Law.Hut : It may b that you can complain about their contact with you to a U.S
agency. That is something that you would have to ask of a US lawyer. Also,
whether you can be subject to arrest at the border or so on is a matte of US
law. I tend to doubt you would be subject to arrest at the border but you would
need to check this with a US lawyer. You could post this as a separate question
through the US legal portion of this site perhaps.
Customer: Thank you so much for your help.
Customer: can I ask you another question not related to the same subject? I am
not sure how this works, it is the first time I use it and I like it very much
Law.Hut : You are welcome. Please rate positively or the site does not credit
me, even if you paid a deposit. You can still ask follow up questions after
that. For new unrelated questions the site policy requires that you repost is
separately. You can refer to my username of lawhut if you want me to respond.
Customer: ok thank you. IT says that expert has not finished responding.. let me
know
Law.Hut : I advised them that I have now and you should be able to rate now.
Sorry about that.

I owe 100,000 to the IRS from 2007-2009 when I worked there…

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