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I just went through an audit and they said I owe around $50,000

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Icon Mini Profile dankryaninko





Joined: 03 Jun 2010

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Post Posted: Thu Jun 03, 2010 8:49 am    Post subject: I just went through an audit and they said I owe around $50,
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We are trying to get that amount down, but, we do get social security retirement. Is there a certain percentage that the Feds can deduct for taxes or can they just take it all.
Thanks.
Icon Mini Profile jenkin7
jenkin7




Joined: 04 Jun 2007

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Location: Hawaii
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Post Posted: Thu Jun 03, 2010 11:01 pm    Post subject:
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Hi dankryaninko,

If you owe taxes to the IRS, they can garnish your Social Security retirement benefits. They will not take all of it. But they can deduct almost 15% of your monthly Social Security benefits if you have taxes in arrear for a minimum of 6 months. However, this is not applicable in case of Social Security disability benefits. IRS will inform you before they garnish your Social Security retirement benefits. You may be able to stop the garnishment on the grounds of hardship. But doing so will not be too easy.
Icon Mini Profile savior70





Joined: 25 Mar 2009

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Location: Florida
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Post Posted: Fri Jun 04, 2010 1:52 am    Post subject:
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To dankryaninko,

The Federal Govt. can definitely take certain portion of your Social Security benefits if you owe them back taxes. I think the best way to avoid such garnishment is to pay off the outstanding taxes. It's good to know that you're trying to get the outstanding amount down. You can go for an Offer in Compromise wherein you can settle the debt for less than what you actually owe. However, you will have to support your offer with sufficient document for the IRS to accept your offer. You will have to prove what you're offering is more than what the IRS would be able to collect from you in the next 24 months.

You may also try the Partial Payment Installment Agreement to pay off the taxes in arrear. This helps you make monthly payments to the IRS. Once you meet the terms of the installment agreement successfully, the IRS can forgive the remaining of your tax debt amount.
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