I could really use your help. I recently received a $6000 plus bill from the IRS for an old Zombie debt from CitiBank that I know I haven’t had any contact with for at least 6-7 years.
From everything I have read regarding bad debt, it seems like I might not owe this tax but I have been unable to reach the IRS to speak to someone regarding this.
What should I do? How can I actually know one way or the other should I pay it or not? Can you recommend a good tax adviser for 1099C, please?
Do You Have a Question You'd Like Steve to Answer? Click Here.
It’s not clear if you received a notice you owe the IRS $6,000 or you received a notice of a 1099-C had been submitted.
If you believe the notice may be incorrect there are ways to deal with this with the IRS. However, you should find a local person who can assist you.
One place to look for such assistance would be from the National Association of Enrolled Agents. An Enrolled Agents “is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee.” – Source
They are often less expensive than a tax lawyer and more knowledgeable than a local storefront tax preparation person.
There are solutions for dealing with your situation but clearly, more information is needed to address your specific circumstances. Please post a comment below to update me when you get to the bottom of this.