IRS and Ch 7

[tmr76]

What is the name of your state? IL

We had our 341 Aug 5th and in our creditors list, we listed the IRS. We owed them for this year and weren't able to pay them at the time. I understand we cannot discharge the debt but they are still adding penalties and late/interest charges and by the time this is over, it will be too much to pay! Can they do this, aren't they obligated to "stop the clock", too?

 

[bigun]

All they have to do is stop collection activity.

 

[tmr76]

They are sending me collection notices saying that they will have to resort to other ways than sending me mail... Isn't that collection activity???

 

[bigun]

That is collection activity and they should not be doing it.
Problem is, in a couple of months once the bk is discharged it won't really matter. They'll be able to garnish your wages, setoff any refund,etc.
This is a real good time to try and work out some sort of compromise with them.

 

[tmr76]

I guess they won't budge on removing the late fees, huh? They sort of screwed me in that I sent in the return timely, just with no payment. They waited for 2 months to send me the bill and already had fees tacked on. I am friggin' ticked but its the IRS, what can you do I guess.

 

[bigun]

Everything in life is negoitable. You'll never know unless you contact them.

 

[tmr76]

I will do that first thing tomorrow morning... wish me luck lol Thanks for your response.

 

[ladujane]

fighting the IRS

we had this same problem, and so we filed a lawsuit against the IRS along with our bankruptcy. It went before the BK judge, and we went back and forth for months until they finally dropped all of the penalties owed and are dropping the interest. Right now they are going over figures because I disagreed with them on some. Once we come to an agreement on what is owed, then we can make an offer of compromise. So, it does pay to get them to listen to you.

 

[tmr76]

To be fair, the amount I owe is not huge... It is only like $300 but still, the interest and penalties add up and the reason we're filing BK in the first place is because we aren't "in" the money. I'm not sure I want to sue them over that, well yet anyway. I will have to contact them to see what they will work out, maybe mention having my atty contact them lol, and hope that they are understanding considering I have been paying my taxes since I've been working on time and in full.

But thanks for your post, its good to hear that you can take on THE MAN and win sometimes!