Sometimes, seniors owe taxes they cannot pay. Often these taxes are old and from prior years when they were working. Some are paying these taxes and going without the basics of life. Although it is rare, some HELPS clients are being garnished 15% of their Social Security. You should know that there is a way to stop harassment and garnishment by the IRS. You can take steps to stop paying past taxes you can’t afford to pay.
The IRS can declare a taxpayer "currently not collectible," after the IRS receives evidence that a taxpayer has no ability to pay. This can be an enormous relief to seniors with a tax liability who are hounded by the IRS to pay their back tax debt. In order to receive Currently Not Collectible status from the IRS, you must prove that you do not have any assets that would enable you to pay the back tax debt you owe (this includes almost all HELPS clients). You must prove that you have enough money to pay for the very basic necessities of life and nothing else. The necessities of life would include: rent, mortgage, food and clothing, health insurance, car payments, auto maintenance, secured loans, utilities, etc. These are called allowable expenses.
Congress has set up an independent department in the IRS called the Taxpayer Advocate Service. It is their job to help persons, including poor elderly, obtain uncollectable status and stop garnishments. This can be done over the phone and it can be done fast! You can find the number for your location here. The Taxpayer Advocate Service is very helpful. We have found them to be kind and patient, after all that is their job.
For HELPS clients: If you would prefer, we at HELPS will assist you with one of our
volunteers. You will call the IRS together with us on the phone, provide the information they require and in a very short time you can be placed on uncollectable status. No more letters, no more phone calls, no garnishment.
This all costs you nothing! If you are paying taxes you cannot afford to pay, please pick up the phone and call HELPS.
To learn more about HELPS visit us at our website: http://www.helpsishere.org/
By Attorney Eric Olsen
HELPS is a nonprofit law firm for seniors and disabled persons on a protected income who are being harassed for debts they can't pay. We're committed to educating people about their financial rights so they don't needlessly pay their collectors with money that should be used for food, heating, medicine, and other basic necessities.
This blog will be updated every Friday with articles and relevant information.
