I need a DU IRS expert!!

[Robb]

:D

I've got a friend who's finally getting money in a divorce settlement here shortly... the martial home is selling. They know the spouse owes a bunch of money in pre-marriage back taxes, and want to drop a dime on him to the feds so he walks away empty-handed. :evilgrin:

Before I continue, he's got it comin'. Loose with the fists, that one.

Anyhow.

The IRS fraud division says they aren't the ones to contact... I've been all over the IRS website. Anyone know how to simply tell the IRS where a delinquent taxpayer is, and that he's about to get a bunch of cash (through escrow, even) for the first time in years?

[Floogeldy]

1. That's cold, man

Personally, I wouldn't interfere.

[papau]

2. Are you chasing the reward - as that requires a form you obtain at IRS

http://www.irs.gov/compliance/enforcement/article/0,,id=106778,00.html

By phone:
You can contact the IRS toll free at 1-800-829-0433.

International callers may call their US Embassy or call 215-516-2000 (this is not a toll-free number).

By mail:
Written correspondence can be mailed to the service center where you file your return. Addresses can be found at; Where to File Addresses http://www.irs.gov/file/index.html

Although you are not required to identify yourself, it is helpful to do so. Your identity can be kept confidential. You may also be entitled to a reward.

If you are a taxpayer who lives outside the United States, the IRS has full-time permanent staff in 3 U.S. embassies and consulates and an office in Puerto Rico. Contact My Local Office Internationally has telephone numbers and addresses of these offices.

Walk-in Offices:

IRS Taxpayer Assistance Centers locations can be found at Contact My Local Office. http://www.irs.gov/localcontacts/index.html

If you are a taxpayer who lives outside the United States, the IRS has full-time permanent staff in 3 U.S. embassies and consulates and an office in Puerto Rico.Contact My Local Office Internationally has telephone numbers and addresses of these offices. http://www.irs.gov/localcontacts/article/0,,id=101292,00.html

Frequently Asked Questions - 1.13 IRS Procedures: Reporting Fraud http://www.irs.gov/faqs/faq1-13.html

[benburch]

3. I doubt the house CAN be sold.

I'm betting there is a tax lien on it that will prevent a sale until satisfied.

Likely also, the courts would divide the liability between both parties!

You need a lawyer to figure this one out, Robb.

[Cary]

5. Not true.

The IRS would file a lien in the course of collection, assuming this is assessed and it has reached the Collection Division.

I am a little rusty on community property states since I don't practice in one. But in a non-community property state the lien attaches only to the taxpayer-spouse's interest.

[Floogeldy]

6. I don't think it would prevent the sale

The house can be sold, but the IRS might take a chunk of the guy's share of the proceeds.

[Cary]

4. Criminal Investigation Division

You file a claim for a reward. Then if the IRS feels like giving you a reward, they will. But don't hold your breath on either an investigation, or a reward.

[Floogeldy]

7. There is nothing criminal about owing back taxes

[benburch]

9. There is if they are on unreported income.

That is what Capone went to Alcatraz for.

[Cary]

10. I never said there was anything criminal about owing taxes.

I said the claim for reward gets filed with the criminal investigation division, and that's the procedure for ratting someone out to the IRS.

I'm sorry if you don't like that. I don't make the procedures at the IRS.

[Floogeldy]

11. It has nothing to do with what I like or do not like

The original post did not indicate any criminal activity.

As I say, according to the facts presented, owing back taxes alone does not make one subject to criminal prosecution.

[Cary]

12. You still misunderstand, friend.

I am a practicing tax attorney, and I have done this perhaps a dozen times. The procedure is to submit a claim for reward form with the Criminal Investigation Division, regardless whether it is criminal or civil.

Again, that is the IRS procedure. I don't make it up. Of course you don't have to believe me but it truly is the case.

[radwriter0555]

14. ACTUALLY, it would be BETTER to let his tax bill keep growing cause

it will get HUGE with penalties... The IRS is brutal on penalties, compounding the bill over and over again.

He'll get his eventually. The IRS will ALWAYS get their man. To have his wages garnished, checking accounts frozen is AWESOME!

[Cary]

15. Failure to pay penalties are 25% and accure at the rate of

.5% per month, or 1% per month if a Notice of Intent to Levy is served. Either way, though, it maxes out at 25%. Interest continues to accrue.

[benburch]

8. One note of caution.

Anybody filing for a reward like that gets audited himself.

[Cary]

13. Nope

Not true unless your own compliance would be at issue for some reason. And, in that case, you might get audited for compliance only.