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Help with back taxes

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  • Dawn
    Hi: I m hoping someone can answer some questions for me. I live in Wisconsin and owe back federal and state taxes. My federal taxes are about $18,000, and
    Message 1 of 4 , Feb 23, 2011
      Hi: I'm hoping someone can answer some questions for me. I live in Wisconsin and owe back federal and state taxes. My federal taxes are about $18,000, and state was $1,900, but I just got a notice that it somehow is now $9,000. I've been paying $50 to the state, but they said I have to increase that also. I know they are compounding interest at an insane rate. I received certified papers in November saying that I needed to call the IRS immediately. I called and was told that I had to increase my payments from $100 to $300 a month but that I could fill out a financial information form and see what number they came up with. I decided not to pursue that route because I was worried about a home loan that I have on my mom's home. I pay the loan to Wells Fargo, and the loan is in both of our names. I do not live in the property; she does. I agreed to just pay the $300 a month. I made the first payment last month, but it is going to be a real struggle to keep up with it. I decided to pay $100 to go see a tax attorney. I felt very rushed talking to him and I didn't feel that he explained things clearly, and I left still not knowing what to do. The only useful information that I got from him was the fact that unless the deed to my mom's house is in my name, he doesn't think they can touch her property. I checked with the county where the property is located, and the deed is only in her name. I do not want to do anything that could affect this property. Is he correct that they can't take her home if I somehow can't pay it because the deed is not in my name? I did not actually retain him as a lawyer because I couldn't afford it, so I only had a short time to speak to him. He told me that I could do a Request for a Collection Due Process or Equivalent Hearing and that it could actually be worth it to do it, but he didn't seem sure about what I should do and said that they might garnish my wages and freeze my bank account if I did that. I left there not understanding any of what he said and very confused about what I can or should do. I'm an independent contractor transcriptionist. I have struggled financially for many years, but since I started working at this new job in 2006, I have had a hard time taking the money out of my pay checks to pay my taxes. Also, I tried to do my own taxes in 2006 and messed up my pension that I had cashed in, and I was fined for that. My boss has agreed to start taking my taxes out for me now. I would really appreciate any advice that anyone can offer.

    • vivus_spartacus
      Since the deed is only in your mother s name, the IRS cannot put a federal tax lien on same, as she is not responsible for any tax liabilities that you may
      Message 2 of 4 , Feb 23, 2011
        Since the deed is only in your mother's name, the IRS cannot put a federal tax lien on same, as she is not responsible for any tax liabilities that you may owe. If you are suffering economic hardship due to past due income taxes and do not own any real property (Home /Land) yourself or in your name, in which the IRS has already filed a tax lien against, and if the Income Tax liabilities are the result of Tax Years which are from 3 Years ago or longer, you should strongly consider the possibility of having same completely wiped away through a Chapter 7 Bankruptcy proceeding, giving you a fresh start. You can either go to your local public library and simply check out Nolo Press' "How to File for Chapter 7 Bankruptcy by Stephen Elias Attorney, Albin Renauer J.D., and Robin Leonard J.D. (Nov 1, 2009)" (an online excerpt explaining how income taxes can be completely removed is here @: http://tinyurl.com/65x4tvp )

        or go online to Amazon and purchase either a new copy of same for $26, or a used copy for $15 ( @ http://tinyurl.com/6kxdavk )

        Also because any Income Tax liabilities outstanding past Three years can be completely removed via Bankruptcy, the IRS deems such as actually "uncollectable" and thus have strong motivations to consider "Offers in Compromise" usually at mere pennies on the dollar to settle the outstanding debt owed!. "Ignorance of fact excuses; Ignorance of the law excuses not. Every man must be taken to be cognizant of the law; otherwise there is no saying to what extent the excuse of ignorance may not be carried."
        Black's Law Dictionary Sixth Edition Centennial Edition (1981-1991)
        page 747

        Leviticus 19:36; Deuteronomy 25:15-16
        Proverbs 20:10;23
        I John 4:6

        We are all born ignorant, but one must work hard to remain stupid.
        Benjamin Franklin

        Wisdom is the principal thing; Therefore get wisdom. And in all your
        getting, Get understanding. Proverbs 4:7

        "vivus spartacus"
        All Rights Reserved

        It is the common fate of the indolent to see their rights become a
        prey to the active. The condition upon which (The LORD) hath given liberty
        to man is eternal vigilance; which condition if he break, servitude
        is at once the consequence of his crime and the punishment of his
        guilt. John Philpot Curran (1750-1817)

        Find out just what any people will quietly submit to and you have
        found out the exact measure of injustice and wrong which will be
        imposed upon them, and these will continue till they are resisted
        with either words or blows, or with both. The limits of tyrants are
        prescribed by the endurance of those whom they oppress.
        Frederick Douglass, "If There Is No Struggle, There Is No Progress"

        --- In tips_and_tricks@yahoogroups.com, "Dawn" <dmwilson12@...> wrote:
        > Hi: I'm hoping someone can answer some questions for me. I live in Wisconsin and owe back federal and state taxes. <Snipped>
      • dave
        The IRs is FAMOUS for getting people to volunteer. You received a general fishing letter. At one time the IRS would make a mistake and send out letters
        Message 3 of 4 , Feb 27, 2011
          The IRs is FAMOUS for getting people to volunteer. You received a general
          "fishing" letter. At one time the IRS would "make a mistake" and send out
          letters saying, "We calculated your taxes and find them off by $XXX
          dollars." In 95% of the cases, the people sent in the money-even though it
          was later determined they owed NOTHING.

          Generally they do NOT attack personal residences. In your case they would
          have to prove some benefit between the two of you,.to you. They won't be
          able to..besides your mother I gather has no tax issues..so don't worry.

          The reason ties all the way back to the IRs restructuring act and what came
          before it. At one time the IRS was taking people's houses left and right..on
          nearly mere whim's. It gathered a LOT of attention and Caesar of the new
          republic-empire doesn't want the attention!....because if enough people
          start questioning..it might let the cat out of the bag that we all live in a
          society that was declared-free .but in essence is run by Congress and the
          President of the United States as Caesar of an EMPIRE. In other words, the
          actual organic law for those NOT on government property favors you 100% to
          simply pay nothing...but that doesn't matter to the banks, the mortgage
          companies, the police, the district courts, the court judges, the sheriff,
          the federal agencies and bureaus, the corporations, etc..who THINK via years
          of custom and careful programming that the government-consisting of a
          Congress and President of the United States-- is literally a king. [You can
          learn more by very inexpensively becoming a student of www.edrivera.com ] Of
          course the mythology is helped by written words-intended only to be for
          certain territorial land-that are the constitution words."supreme law of the
          land." You see BECAUSE the freedom-truth is OUT THERE and exists in their
          OWN LAW..they have to go to great pains to do things the way that they
          do..such as "implying" you have an actual "legal duty" to discuss anything
          about finances. We got close just before the re-structuring act when many
          people were having their homes stolen...but alas.Congress roped-in the
          IRS..thus preventing enough people questioning.

          So the bottom line is RARELY do they take anyone's home..very very rarely. I
          would not worry.

          Dear IRS,

          I received your letter. Why does a Congress and President of the United
          States continue to wage war against me? I am peaceful and wish no harm to
          anyone. I have to take care of my mother's bills because she is unable to do
          so herself. Now you demand more payment from me and ask me to make the
          decision to essentially force my mother onto government assistance? Please
          write me back a certified mailer stating that this is what you are asking me
          to do so I can use as justification with other federal agencies. If I
          receive no response of substance in 30 days I will assume you made a
        • Jake
          This is from Dave s comment back in February regarding the Help with back ... rarely. I would not worry. While it s true that it doesn t happen often, it does
          Message 4 of 4 , May 3, 2011

            This is from Dave's comment back in February regarding the "Help with back taxes" thread:

               > . . . the bottom line is RARELY do they take anyone's home..very very rarely. I would not worry.

            While it's true that it doesn't happen often, it does happen & I want to mention a particularly bad case.  It's quite involved & I won't take the time to get into all the details, but what happened is a man's former wife got a lien put on her home for back taxes he allegedly owed & I presume the house has been sold out from under her.

            They divorced in 1984 & part of the divorce property settlement was that she got lifetime rights to the home, although it was mortgaged & she'd have to make the payments, pay the property taxes & utilities.  The man remarried & his problems with the IRS didn't begin in earnest until 2000, although the IRS was going back to 1994.  Nonetheless, those problems had nothing to do with his former wife or the house, which he moved out of prior to the divorce & the IRS admitted they had no claim against the former wife.

            Now here's the sticky part & those who deal with trusts need to pay attention - the man's former wife didn't have any credit & he'd made some mortgage payments for her when she couldn't - children from the 1st marriage were living in the home & he wanted to make sure they didn't have to move, change schools, etc.  And the interest rate was high.  The house was in a family trust which didn't have credit either, so the only way to re-finance for a better rate was for the man & his 2nd wife, they did have credit, to take the house out of the trust, get financing in their names, then put the house back into the trust.  Don't make a mistake like that.

            The IRS said the trust was just an "alter ego" for the man & he still had a personal interest in the house, even though he'd signed that away in the divorce property settlement clear back in 1984.  I helped them work on that case for years, but the man died of cancer last year & the other people didn't stay in touch with me - last I talked to one of the children (now grown up) of the 1st marriage, the house was about to be sold & they'd already found a place to move to, so while they didn't want to lose the family home, they were prepared to deal with it.

            The case went to the 4th circuit court of appeals, but there it died since the man died & neither his 1st nor 2nd wife stepped in to take over, which by procedural rules they could have.  10 years of legal work down the tubes & a house which the IRS had absolutely no claim to whatsoever to slapped with a lien for taxes the ex-husband supposedly owed, which didn't even start until 10 years after the divorce.

            So realize who you're dealing with - the face of evil itself - people have termed the IRS, "Individuals Representing Satan" & I would not argue with that characterization.

            ~ ~ ~

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