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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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Taxes Made Easy! 

Taxes Made Easy

Take the stress out of tax prep with our free checklist.

Taxes Made Easy! 

Take the stress out of tax prep with our free checklist.