delinquent federal taxes
my husband owes federal income taxes from 1992 and 1993,we were married in 1994.he was on a payment plan with the irs until 1994 when he had several heart attacks and was unable to meet his payments.when he was able to resume paying they refused him a payment plan stating that he had not honored his original agreement.since that time he has not been able to pay them any money as he is now totally disabled and on social security disability.the irs is now sending him letters with the threat of seizing any asset he may have and filing a lien against him.he has no assets other than joint ownership in a vehicle that is not worth the payoff.my question is can the irs seize any property that belongs to me and is there a statute of limitation on the taxes he owes?we have been in contact with an attorney about a compromise but the fee is more than we can afford not including what we would end up paying to the irs.what options do we have?
thank you
1 Answer from Attorneys
Re: delinquent federal taxes
Your question deserves a longer answer than posting here would permit, but let me outline some points for you:
1. If your husband's income is as low as you describe, you should be able to get the IRS to post the accounts "Currently Not Collectible" or CNC. They will want information on your family income and living expenses before making this determination. If they post them CNC they will take no further collection action until his income increases.
2. The taxes are old enough to be dischargeable in a simple Chapter 7 bankruptcy. He has no assets which would be lost (according to your description), and the tax debt would be entirely eliminated.
3. The offer in compromise program has become a cruel hoax. It takes many months, you have to constantly update the financial information, and in the end the IRS rejects most offers anyway. Furthermore, many low income taxpayers fall victim to the bogus "offer mills" -- you know, the jerks who advertize on late night TV and on the internet "we'll settle your tax debt for pennies on the dollar." They usually take your money and that's about the end of it.
3. You are not and never will be liable for your husband's taxes incurred prior to your marriage.
4. My best suggestion is call the local office of the Taxpayer Advocate (get the number on the IRS website at www.irs.gov), and tell them collection action would result in a hardship and that you need help getting the accounts posted "currently not collectible."
You can get much more information on all of these approaches on my website at www.bjhaynes.com.
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