Client retired on disability in 1992 due to an injury sustained on the job while working as a mall cop. He got an apparently taxable lump sum payment from private insurer - coverage had been through the job. There must have been Federal withholding sufficient to more than pay the Federal Tax because he never filed Federal or State and has since heard only from State. He spent the money on living expenses including high medical and on a wedding for his daughter and he now lives on his Social Security Disability check of around $600 a month. He bounces on and off of the Medicaid rolls. I am still in the process of getting his POA to the collections agency (they can't find my fax). He can't pay the tax so what are his options given he neglected the case to this point? If I should decide to file tax returns for him, who would have a record of his income from 1992 since he does not? I know from other discussions here that there's no way to recover his State Withholding. I also understand that since he never filed the statute of limitations will never run out.
-
-
I think
it is called ask for MERCY!!! -
There's a technical name for it
If he had not yet gone to the private collection agency I would file an income statement and ask for CNC Status or perhaps even file for an Offer In Compromise. I was fishing for how much the private collection agency changes the picture. Does anyone know?Comment
-
Bump
Let's see if I can get a reply. If not, oh well.Comment
-
Check your states rules on collections that have been sent to a private collections agency and try to get it back to the state revenue dept. Our state tried the pvt. collections route for a few years but the taxpayer always had the ability to request their case be given back to the state collections people for resolution. The whatever process for an OIC etc. can be pursued."A man that holds a cat by the tail learns something he can learn no other way." - Mark TwainComment
Comment