IRS penalty and interest/ wage garnish
When I filed my 2006 taxes I totally messed up and did not complete the capital gains section for stocks bought and sold. I have completed the short term capital gains and sent that to the IRS and they lowered my tax bill from $20,000 to $15,000. I have just completed the long term section and will send it to the IRS and hope my bill is lowered again. My question is that I have been unemployed for one year due to a medical condition. I own my car
outright and I owe $170,000 on my house worth $200,000. I have had to cash out all of my savings, stocks, IRA's and have no income,not even unemployment money. I am not married and I am the sole income to support myself.
No children either. When I return to work can the IRS garnish any of my wages until I can get back on my feet ?? Will the IRS force me to sell my house or car to pay the taxes ?
Will the IRS let me make a minimal payment until I am employed again and can afford to start paying it off. ?? I plan on going on a payment plan as in the IRS information sent to me.
2 Answers from Attorneys
Re: IRS penalty and interest/ wage garnish
While the IRS has the power to do all the things you mention, but, because of the amount involved, they will probabbly let you set up a payment plan. For more information please contact me.
Re: IRS penalty and interest/ wage garnish
Setting up a payment plan will keep the IRS from levying your wages. They only seize property as a last resort and your situtation is low on their priority list. If you are not working, you may be eligible to have your account placed in currently uncollectible status. The IRS will leave you alone until you are working. However, interest and penalty keep accruing.
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