Has Anyone Negotiated with the IRS for taxes owed?

2015-10-26T16:14:25-04:00

My wife and I both have PTSD and dropped the ball on taxes for two years. We owe $7500 in taxes and $2500 in interest. Has anyone been able to negotiate with the IRS?

Response by CAPT Kevin B. made Oct 26 at 2015 4:29 PM

2015-10-26T16:29:05-04:00

I'm in the middle of "checking the wrong boxes" in TurboTax resulted in a bill. There's the bill, interest, and then penalty. So after sorting it and yes I made a mistake, I paid the tax and interest but requested a waiver of penalty. The IRS has a one time whoopsie thing. I don't know what their criteria is but I had the TaxAudit.com folk do the letter. We'll see it they bite. If not, then I need to write another check.

Response by TSgt Private RallyPoint Member made Oct 26 at 2015 6:12 PM

2015-10-26T18:12:54-04:00

Talk to a Tax Attorney. Might cost you 100-200$ for a consult, but they can give you some great guidance and might for much cheaper help out depending on the situation.

One helped my parents take $21,000 bill down to $6,000 and cost them about $1,000.

Response by CPT Pedro Meza made Dec 28 at 2015 3:53 PM

2015-12-28T15:53:22-05:00

I have been there, start by reading the laws: The collection of most every IRS debt eventually ends, and that would include yours. This is called the statute of limitations on IRS collections. The Internal Revenue Code gives the IRS a window of time to collect from you; after that window closes, you are free from your tax debt and the IRS.

Here are five truths about how many years the IRS to collect back taxes from you:

1. There is an IRS statute of limitations on collecting taxes. The IRS is limited to 10 years to collect back taxes, after that, they are barred by law from continuing collection activities against you.

2. The IRS 10 year window to collect starts when the IRS originally determines that you owe taxes – that is usually when you filed your tax return, or when the result of an IRS audit becomes final.