Taxpayer was at one time making a good income and paying his taxes. Then he came down with health problems severe enough he went on Social Security Disability. He never filed for the year he got sick and he definitely does owe the tax. I am trying to negotiate Currently Not Collectible Status since he is indeed living on nothing but Social Security at this point. The last contact we had with the IRS was with a lady who approved CNC but said she had to get her decision approved by higher levels and that they would be in touch. I guess it's been about six weeks and we get this notice of Lien on his home. We had been told that would happen so my question is do I or do I not need to appeal the Lien, and if so, do I want a Collection Due Process Hearing or a Collection Appeals Process Hearing?
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We have not called for an update. I will do that on Monday.
This taxpayer subsists on nothing but disability social security and he does not have the money for an installment agreement. He has mental problems that all but keep him cooped up in his home and make him spend all his money and time keeping himself and his home clean. He has had a recurrence of his cancer and has in all probability a short remaining life span. He's not going to see an increase in his income.
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health update
The tumor they found turned out to be smaller than expected and non malignant so while it does need to come out it isn't a life threatening condition.
Now an OIC is starting to look like a better option but given that he owns outright a house worth slightly more than the debt, would an OIC be approved? His credit is so bad there's no way he can get a loan on the house or pay it off if he got it.
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Originally posted by erchess View PostThe tumor they found turned out to be smaller than expected and non malignant so while it does need to come out it isn't a life threatening condition.
Now an OIC is starting to look like a better option but given that he owns outright a house worth slightly more than the debt, would an OIC be approved? His credit is so bad there's no way he can get a loan on the house or pay it off if he got it.
They so not as a matter of course take a person's house and toss him out on the street.
However... what on earth does he have to even offer IRS?ChEAr$,
Harlan Lunsford, EA n LA
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Originally posted by erchess View PostTaxpayer was at one time making a good income and paying his taxes. Then he came down with health problems severe enough he went on Social Security Disability. He never filed for the year he got sick and he definitely does owe the tax. I am trying to negotiate Currently Not Collectible Status since he is indeed living on nothing but Social Security at this point. The last contact we had with the IRS was with a lady who approved CNC but said she had to get her decision approved by higher levels and that they would be in touch. I guess it's been about six weeks and we get this notice of Lien on his home. We had been told that would happen so my question is do I or do I not need to appeal the Lien, and if so, do I want a Collection Due Process Hearing or a Collection Appeals Process Hearing?
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i THOUGHT YHOU HAD TO GO THROUGH EACH STEP TO SHOW IT WASON'T POSSIBLE for the client to comply before you could take it to a higher step. They won't consider an OIC, which takes time unless the TP has an installment in place or has shown he can't even pay installments.
sorry for the caps...Believe nothing you have not personally researched and verified.
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he owns outright a house
Originally posted by erchess View Post...but given that he owns outright a house worth slightly more than the debt, would an OIC be approved? His credit is so bad there's no way he can get a loan on the house or pay it off if he got it.
I am EA in California, but the above reflects only my reaction to what I hear, not any particular experience with this situation.
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Originally posted by taxea View Posti THOUGHT YHOU HAD TO GO THROUGH EACH STEP TO SHOW IT WASON'T POSSIBLE for the client to comply before you could take it to a higher step. They won't consider an OIC, which takes time unless the TP has an installment in place or has shown he can't even pay installments.
sorry for the caps...
The question still remains, if one can just wait for CAP hearing or has to deal with collection department first or as well.
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Originally posted by Gretel View PostI am not sure myself, but here is what I understand: In any case it is better to request a CAP hearing. Once IRS has received this they can no longer levy. Whereas when you deal with the collection department and they do not process in time it can happen that they levy (even though they shouldn't if it is their fault) and it is almost impossible to have them reverse if it is a bank account. Been there, done that. TAS finally helped. Not to say that IRS never will levy if CAP request is filed but then it is clear that they are in the wrong.
The question still remains, if one can just wait for CAP hearing or has to deal with collection department first or as well.Believe nothing you have not personally researched and verified.
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CNC Approved
I have been told on the phone that CNC is approved. Do I need to press for that in writing and if so whom do I press?
The best news is he has only a non malignant tumor and has been told that while it ought to come out it is not life threatening. Remember he's retired on disability social security as his only income and he is emotionally ill.
I would also appreciate arguments about whether to appeal the lien remembering that he has no resources with which to go for an IA nor anything to Offer in Compromise. (Can we do an OIC for nothing when he does own outright a shack that he bought for $30k [that is a little more than the debt amount] in 2004?)
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