Default on Offer in Compromise, IRS
My question involves collection proceedings in the State of: Massachusetts
Hi -- Had small tax issue years 1995, 1996 and 1999, amounting to about $5,000. IRS refused various offers in compromise over the years and debt grew to $25,000. Finally, I filed in Tax Court and I negotiated and settled in a compromise for $100/month, five years, $5,000. Began paying in December 2006.
Lost my job in July 2008, but continued paying until January '09. I owe 1,900. IRS agent told me not to continue paying when I couldn't pay any longer, stating that this would be written off! Guess again.
IRS Collections said it's uncollectable, but they would place a lien. I contacted Advocate, who said they put a stop on lien. Ha Ha. I received notice that I now have a $30,000 federal tax lien. I completed offer in compromise through Advocate to pay the entire balance due, $1,900, which Collections initially refused. Haven't heard from the advocate about how a lien was placed or the status of the offer.
I'm insolvent, but just started receiving some unemployment but not for much longer, was refused school loan, to retrain, and couldn't even get work with the Census Bureau, all because of this. I am 55 years old, own nothing! My other debts amount to about $30,000 in credit cards, all defaulted.
Am I going on the right path to resolving this? Should I file bankruptcy and will it be written off and the lien removed? What's the best I can do to be done with this 15-year nightmare? Will they likely accept the latest offer and call it a day?