AboutHelen P. O`Planick, EA Expertise I am a tax professional, with experience in individual taxation. I would prefer not to answer questions about non-resident aliens or corporate taxation. Please do not ask me state related questions, unless the state is Pennsylvania. There are 42 taxing states and 42 TOTALLY different sets of state tax law.
Experience I have been preparing tax returns almost all my life. I have been in professional practice for 25 years and I am enrolled to practice before the Internal Revenue Service.
Organizations National Association of Enrolled Agents
Publications I am a prior Money Magazine Tax Test taker and have been quoted extensively in all media including monthly periodicals and books by tax authorities.
Question I became disabled in May 2006, medical mystery, multiple surgeries, and 11
month wait for SSD help with no income whatsoever. Cashed out all IRA's and
owe $23K to feds, plus more to my home state of MA. My SSD income is less
than monthly expenses, leaving me no money for food past my routine bills
of mortgage-RE tax-heat-elec and the like. No food, no frills, not even gas
money. Have no resources left other than my home, only owe $65K, with
about $200K in equity. Will they expect me to sell my house to pay my tax
debt? Do they feel it's "not their problem" that I'd then have no place to live?
Rent will cost more than mortgage & RE tax. I know they're ruthless, I just
don't know HOW ruthless. I can't get a home Eq loan because I have nothing
to make the monthly payments with! How far do they expect one to go?
What's the likelihood of finding a Pro Bono tax attorney for this situation?
Thanks so much.
Answer Mary, I feel for you, but you can't expect not to pay taxes even with illnesses, etc.
Since you have equity in your home, the IRS will expect to be paid. You are not uncollectable and you do not qualify for an offer in compromise due to this equity so you will be throwing money away by trying to get one.
You really do have three choices - a home equity loan, any kind of loan (be it thru family and friends or just a personal loan) or sell your home and pay off the taxes.
I understand your problem, truly I do, however, you owe the tax and you need to come up with some way to pay it. Your first step is to make sure the returns were done correctly, then talk to the IRS and see if you can work out a payment plan. But you are not going to get out from under these taxes. And they will put a lien on your home so if you do sell, your taxes are paid first.
