Foreclosure and the IRS

I have had a number of clients come into my office and tell me that they are going to ignore their IRS problem while they are dealing with a foreclosure. In this bad economy, if a person owes money to the IRS, they may try to avoid the problem by not filing their tax returns. Others may substantially increase the number of exemptions they are claiming at work, so they can get more take home pay. This means at the end of the year they will be totally upside down and owe even more taxes, penalties and interest. Either way, it’s a bad situation. However, there may be a light at the end of the tunnel.

If you have nothing – no equity, no retirement, and no savings, there’s a good chance that the IRS will consider you Currently Non-Collectible, or they may consider lowering your taxes and penalties by agreeing to an Offer-In-Compromise.

If you are in the situation of dealing with both a foreclosure and an IRS problem, please contact Attorney Mary E. King to discuss your options and your rights at (941) 906-7585.