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ntiptop
New Member

Can IRS collect on old taxes if I'm on welfare now?

I got a letter from IRS stating there was a deficiency in my 2018 federal taxes and they want $6K.  I don't have that money, and I'm on state assistance.  I'm a single parent (fresh divorce) of 2 kids.   Can they come after me or do they need to put this on hold until I'm off welfare?  How do I respond to this? 

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4 Replies

Can IRS collect on old taxes if I'm on welfare now?

ntiptop
New Member

Can IRS collect on old taxes if I'm on welfare now?

Thank you - but I'm not small business or self-employed.  And this looks scary - they keep charging interest however long its left unpaid.  That's awful of them. I think I may look into OIC.

Can IRS collect on old taxes if I'm on welfare now?

Start with a phone call ...  and you will only complete the 433-A if you are not a farm or business.   Even if you try the  OIC route  you will still need to fill in the 433-A ...   https://www.irs.gov/payments

 

Submit your offer

You'll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B PDF.  Your completed offer package will include:

  • Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
  • Form 656(s) - individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
  • $205 application fee (non-refundable); and
  • Initial payment (non-refundable) for each Form 656.

 

 

 

If we determine that you cannot pay any of your tax debt, we may report your account currently not collectible and temporarily delay collection until your financial condition improves. Being currently not collectible does not mean the debt goes away, it means the IRS has determined you cannot afford to pay the debt at this time. Prior to approving your request to delay collection, we may ask you to complete a Collection Information Statement (Form 433-F PDF, Form 433-A PDFor Form 433-B PDF and provide proof of your financial status (this may include information about your assets and your monthly income and expenses). You should know that if we do delay collecting from you, your debt will increase because penalties and interest are charged until you pay the full amount. During a temporary delay, we will again review your ability to pay. We may also file a Notice of Federal Tax Lien to protect the government's interest in your assets.

For more information see Collection Procedures: Filing or Paying Late.

 

To request a temporary delay of the collection process or to discuss your other payment options, contact the IRS at 1-800-829-1040 or call the phone number on your bill or notice.

Anonymous
Not applicable

Can IRS collect on old taxes if I'm on welfare now?

Before the IRS will consider an offer, you must have filed all tax returns, made all required estimated tax payments for the current year, and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.

 

 

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