From: Scottsdale, AZ

Dear TaxMama,

My father has back taxes owed from 1099's in 1998, 1999, and 2000.

All returns have been filed no later than 2002, so the statute won't run out until 2012.

He is 68 and only collects Social Security. IRS collectors have filed a lien and want an offer in compromise ASAP.

Can he obtain a non-collectible status?

Please help, as I am trying to do something for him quickly.

He has barely enough money to live on.

Jeff

 

 

Dear Devoted Son Jeff,

Why does Dad have so little to live on? Don't you help him? He took care of you while you were growing up, and going to college,... and whenever you needed some money.

But, that won't affect his financial status for IRS collections. So, let's look at what IRS will ask:

Does your dad own his home?

Does it have equity?

If it does, IRS will want that money, You won't get an offer in compromise.

If dad is renting, on the other hand, and only has Social Security to live on, then tell IRS. Give them his complete financial information on the phone. They will put a hold on collections for 6 months to a year at a time. They will review his status periodically.

If ever has more income, they'll want to get some payment. If not....once ten years passes, he'll be off the hook.

If, heaven forbid, dad should die, and he still owes the money - pay the immediate bills for his care and funeral, then pay IRS what they are owed.

If you don't, they WILL follow the trail of the money and collect from whoever received it. (Sometimes... they aren't always that well organized about it. )

That's my best advice for now.

Take good care of dad!

Best wishes,
Eva Rosenberg, MBA, EA