IRS is evil!

[MzDiz]

My ex just called me with really bad news. About ten years ago, both he and my parents claimed our kids (we were living with my folks at the time) and both ended up with a return. I realize that someone shouldn't have had that return (my parents, grrr, they were told not to claim them but felt it was their right) but now the IRS wants to take all of my ex's paychecks, less 162.50 per pay period. That's nuts. They are even taking my child support! They told him that even though it was court ordered, it's optional that he pay it.
They told him that he couldn't work out a payment plan (he wants to work this out) and they could do whatever they wanted. So he basically gets to bend over and try not to scream. They claim they've tried to contact him over the years and gave an address that he hasn't lived at in nearly ten years. Funny, they manage to find him to send him anything else.
Does anyone know anything about this? The woman on the phone (who only gave him a number, not even a first name) told him to not even bother to get a lawyer, they were taking what they wanted. Advice welcome!

 

[BelleBoo&AmisMum]

Get a lawyer, quick!

 

[wendy46001]

Yup get a lawyer...and fast.....if anyone ever tells you not to get one that just means get one quicker

 

[Nana Annie]

 

[mickeyfan2]

Why are they going after the parents and not the grandparents? The parents should be the first to be allowed to claim their own kids. Looks like a lawyer is needed.

 

[jgmklmhem]

Why are they going after the parents and not the grandparents? The parents should be the first to be allowed to claim their own kids. Looks like a lawyer is needed.

The rules state that the person or persons can claim someone as a dependant if they provided for over half of the disputed persons necessities in monetary terms (housing, food, education, clothing, transportation, medical etc). We had this problem when we got married mid-year and my FIL wanted to claim my wife but since she or we provided for way more than half of her finances he wasn't allowed to claim her even though he did, so he is the one who ended up owing money back tot hem.

 

[CathrynRose]

My ex just called me with really bad news. That's nuts. They are even taking my child support! Advice welcome!

Dang - thats terrible.

I wish I had advice, I dont.

IRS *is* evil.

 

[MzDiz]

Me three...get a lawyer QUICKLY

Lots of things don't add up here.
I was under the impression that court orders were not optional and doesn't the IRS say that you only have to save receipts for 7 years. How can they come back at you after 10 years?

Are you sure this is the IRS and not an identity scam?

Either way, I would be getting a lawyer within the next 24 hours.

I'll be the first to admit that I know nothing about tax law. I didn't know about the seven year thing. I'm going with him to the IRS office tomorrow morning, so hopefully someone might be able to provide us with more information.

As far as my parents go - yes, they should be going after them - ten years ago. Neither I, nor my ex are willing to put any of this burdon on them. They're both in poor health and in no way could they come up with over 5k to cover this. He didn't even mention it to them when we all met for my daughter's birthday dinner last night. Needless to say, things were very different back then and there was a lot of bad blood and back biting.

I'm always seeing this crazy woman on television talking about "settling your debt with the IRS for pennies on the dollar". I wonder if he could do something like that, or if it's too late. I just hope there are some clear answers tomorrow.

 

[olena]

Get a tax attorney. With a situation like this, a second opinion is a must.

I hope it was the IRS you're dealing with. The news just hit that the IRS is farming out collections to collection agencies.

 

[goodeats]

I believe the 7 year statute is only in regards to unintentional mistakes on taxes. If they think it's fraud (i.e. done on purpose) there is no limitation.

Get a lawyer!

 

[Toby'sFriend]

I would advise not to go to the IRS office until you retain the services of a Tax Attorney or IRS Enrolled agent.

Then, when it is all computed as to what is owed - you say $5k - I would take out a personal loan and pay the IRS. I'd much rather owe my soul to a bank that the IRS.

 

[Maleficent13]

Get a tax attorney. With a situation like this, a second opinion is a must.

I hope it was the IRS you're dealing with. The news just hit that the IRS is farming out collections to collection agencies.

Now that you post this, I bet that's exactly what happened. Sounds like collection agency tactics, especially with the "don't even bother with a lawyer" thing.

 

[olena]

Now that you post this, I bet that's exactly what happened. Sounds like collection agency tactics, especially with the "don't even bother with a lawyer" thing.

I think they're both cut from the same cloth. One just happens to be a branch of government. If the Fair Tax ever gets passed, at least we could get rid of the IRS.

 

[bsnyder]

I'd also urge you to get a lawyer or a CPA involved. Someone who has experience dealing with the IRS. They can be extremely intimidating and trust me, you don't want to risk pissing them off. They hold all the cards.

I just spent almost 8 frustrating months trying to get them to give the all clear after doing an audit of my older brother's tax return. He is 100% disabled due to a mental illness, and I am his POA and Trustee of his limited financial assets. The return got flagged because of his high medical expenses relative to his age.

He didn't owe any money but the auditor was very difficult to deal with. My CPA said that's usually the case, but that this guy set a new standard of rudeness and intimidation.

 

[barkley]

tell the parent to point out that they had 'care and control' of the children. despite someones elses belief or claim that they provided support-there are other factors beyond the monetary expenditure that are taken into consideration.

issues such as -who provided/paid for medical care
what the 'fair market value of housing' was (determined by regional rates not by what rate the homeowner/renter believes)
other items 'of need' provided-is a parent paying for life insurance that will benefit the child, is the parent paying for medical coverage (health, mental, dental) the child could benefit from, contributing to a retirement program that the children are beneficiaries to....


i had a co-worker that I WISH THE IRS HAD CALLED TO TASK-she claimed her grandkids based on the fact that she spent more on designer clothing and CRAP than her dd/sil did on basic human needs-in her 'mindset' she was providing more than 50 percent of the child's needs-HECK NO-she was providing more than 50 percent of her/child's DESIRES.

try to gather the pertinant info and fight this.

 

[Tiggeroo]

go to one of those companies who specialize in dealing with the irs. Their prices and reputations vary so call around and check with the BBB. They can immediately have the irs lien released and work toward a payment plan.

 

[BillSears]

As far as my parents go - yes, they should be going after them - ten years ago. Neither I, nor my ex are willing to put any of this burdon on them. They're both in poor health and in no way could they come up with over 5k to cover this. He didn't even mention it to them when we all met for my daughter's birthday dinner last night. Needless to say, things were very different back then and there was a lot of bad blood and back biting.

I hate to say it but either you and your ex are in the wrong for claiming your children or your parents are in the wrong for claiming your children. If you are going to avoid having blame placed on your parents then you're going to have to take the blame onto yourselves. Only one of you should have been able to legally claim the children.

 

[Tiggeroo]

there is a ten year statute on irs debt. But if the taxes were re-done a few years later due to this error the ten years may start with that date. They should be willing to work out a payment plan and it should be much lower. If the balance is small, under $5000 you will do better getting on a payment plan. If it's larger you should work with a firm who deals in this. It will cost but be worth it as they may also get interest and penalties waived.
There is also the possibility that they can pursue this matter with both spouses, taking both their paychecks so make sure whatever agreement prevents that.

 

[C.Ann]

Something similar happened to my stepdaughter and her DH a number of years ago.. Her DH had full custody of his 4 children from his previous marriage and they were living with them full-time.. Come to find out, his ex had been claiming them on her taxes for several years.. Although a lawyer was retained, it was perfectly legal for the IRS to go after him (because she was only working part-time and not making enough money for them to be bothered with) and for quite a long time (at least 2 or 3 years) they took all of his paycheck accept for an amount similar to what the OP has stated here..

If they want to, the IRS can basically do anything they darn well please..

 

[Sherri]

Not much advice, I just wanted to say good luck.
As far as going after your child support, I would call your local domestic relations office about that. Its free advice.