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Lamon has the IRS after him and lives off Social Security income. What can help him out?

QUESTION: Lamon is 64 and living on Social Security income. He has depleted his 401k because of alcoholism and the IRS is after him for $48,000. He isn’t sure what to do about paying this back.

ANSWER: On Social Security income, it’s going to be tough to pay this back. You guys aren’t wasting money; you’re already living on nothing. You can’t cut expenses very much, so we have to create some income. You might be close to being a candidate for an offer in compromise, where you have to prove yourself unable to earn an income and don’t have assets to pay a debt. To find that out, don’t go with a cable TV ripoff. Instead, go to a certified public accountant that does work with offer in compromise. Get them to settle for a few dollars and get them out of your life, because they won’t go away.

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