A gift for the IRS

Jeff Martinez · #1 12-18-2008, 10:52 AM

I would like to officially give the finger to the federal government and especially the IRS.

Last night, we received notification that the IRS is going to take $1600 out of each of my fiancee's upcoming paychecks for a while to settle her debt, which she already has payment arrangements on. Unfortunatley, a few years ago, someone gave her some bad tax advice and she claimed like 12 dependents, when she should have been claiming single/1. Of course, she now owes a lot to the IRS. She has been making the agreed-upon payments. But now, I guess they decided that they want the money sooner. I guess this is how the bailouts are going to be funded... by spoiling Christmas for families!!!

GRRRRRRR

</rant>

Chriss62 · #2 12-18-2008, 10:54 AM

Damn, That sucks. I hope you can still pull through.

Mark Latimour · #3 12-18-2008, 10:59 AM

Did she consider suing the tax adviser? Is there penalty interest involved? You might be able to appeal against the penalty interest if it was as a result of bad advice from a proper advisor.

If she claimed that much of a deduction (ie 12 dependants) then she would have got an immediate benefit. Its not unreasonable then to have to pay that benefit back immediately, but I can understand that this causes undue hardship.

Jeff Martinez · #4 12-18-2008, 11:10 AM

Unfortunately, the bad advice was from a friend, and not anyone who should have been giving tax advice. She just made the poor decision to actually take the advice. She did benefit temporarily, and has been paying according to the schedule worked out directly with the IRS.

We will make it through this, but it will not be pretty for a while, and we'll definitely have to tighten our proverbial belts considerably. Luckily, we've already done some Christmas shopping for the kids, so they won't be too impacted.

NJL · #5 12-18-2008, 11:21 AM

can you get a personal loan to just pay it off? interest should be waaaaaaaaaay lower than the IRS "interest and penalty" bs..

good luck, man.. been there, it's not fun.

MJ5150 · #6 12-18-2008, 11:24 AM

Yowch! Those IRS guys can be like that, and they don't have to answer to anyone.

Perhaps you can work out a deal with a local auto dealership on a new car since her deductions are going to end up in their pockets anyway. Or you could maybe negotiate a deal on discounted financial services from AIG

-Mike

Mark Latimour · #7 12-18-2008, 11:28 AM

OTOH, if the IRS accidently took too much money from you, would you be happy with them paying you back in delayed instalments without interest, or would you like it back as soon as possible with interest? Really they act no differently than any other creditor, its just that they have more "ways" of extracting the debt.

warwick.hoy · #8 12-18-2008, 11:31 AM

Sorry to hear that man. Considering they are giving billions to the banks and Detroit I'm guessing the IRS will be aggressively pursuing any unpaid taxes.

Jeff Martinez · #9 12-18-2008, 11:33 AM

Quote:

Originally Posted by MJ5150

Perhaps you can work out a deal with a local auto dealership on a new car since her deductions are going to end up in their pockets anyway. Or you could maybe negotiate a deal on discounted financial services from AIG

Funny. I said something similar last night, about appying this towards the new car were hoping to buy. The timing of this just fuels my distaste for the bailouts. It may just push me to NOT buy a Ford the next time I buy a car.

Mark Latimour · #10 12-18-2008, 11:35 AM

Quote:

Originally Posted by Jeff Martinez

Funny. I said something similar last night, about appying this towards the new car were hoping to buy. The timing of this just fuels my distaste for the bailouts. It may just push me to NOT buy a Ford the next time I buy a car.

I would seriously consider any avenues of appeals etc. It may be the accelerated payments are a result of some internal crap that they will reverse if its vigorously drawn to their attention.

Jeff Martinez · #11 12-18-2008, 11:42 AM

Quote:

Originally Posted by Mark Latimour

I would seriously consider any avenues of appeals etc. It may be the accelerated payments are a result of some internal crap that they will reverse if its vigorously drawn to their attention.

She's actually on hold with them right now. Hopefully, we can get something worked out.

FL Knifemaker · #12 12-18-2008, 11:59 AM

How many fiancees do you have??

I would call the IRS again and try to talk with them. As much as I hate paying taxes, they've always been very fair in working with me.