I need major HELP

iVillage Member
Registered: 03-26-2007
I need major HELP
19
Fri, 05-01-2009 - 11:24pm

I'm in need of some major help and I don't even know where to begin to get it.

1.) I'm underemployed. I lost my full-time job in March and am only working 10 hours per week right now. I'm looking for full-time work and am living off my meager earnings, and have one month's worth of severance pay that I haven't received yet. My bills total $1500 per month -- and that doesn't include food or gas. I'm single and live alone. I've tried to find a roommate to help with my $800 worth of monthly rent, but I haven't found one yet. I have no savings.

2.) I have, all together, about $60k worth of debt. The debt is more or less divided equally three ways -- tax debt, unsecured, and student loans. Plus there's the $5k I owe on my car. Most of the unsecured debt is medical and CC stuff that I defaulted on a few years ago after I lost my job after being hospitalized.

3.) I was sued two days before I lost my job for a defaulted credit card. The amount in question is $3200 -- the charge-off amount was $1,200. I have no lawyer because I can't afford one. I filed an answer with the court to avoid a default judgment but I highly doubt I will win my case because I don't have any valid defenses against the lawsuit.

4.) The IRS is after me. I haven't filed in a couple of years (BIG mistake) because I was being paid as an independent contractor and had no idea how to do my taxes. The place I was working for was uncooperative in getting my 1099 docs to me -- I didn't get my 2006 docs until this spring, for example. I probably owe about $15k in back taxes and I finally received a notice from the IRS about my missing tax return. I know I need to get my taxes filed, but I'm scared scared scared to even do something about it. However, I know that if I don't do anything, things will get worse.

I really, really don't know what to do right now. I am looking for a job, but as everyone knows, the job market is horrible. Before I was laid off, I'd been consulting with bankruptcy lawyers and was looking at doing a Chapter 13 plan to deal with the tax debt. I saw one BK lawyer the day after the layoff and he told me I couldn't do a 13 until I was employed full-time again. I'm really panicking and don't know what to do. I'm scared of the lawsuit going to a judgment and having that show up on my credit report, which could affect my ability to get a job. I'm HORRIFIED about the IRS crap. I can't offer the IRS anything right now, payment-wise, and my tax returns will probably require the help of a professional. (One return consists of 1099 and W-2 income, plus I lived in two states that year. UGH.) I don't know what to do or where to start. I'm not eating or sleeping properly, and I can't relax. I'm 29, so I'm too old to run home to my parents (did that before -- can't do it again), but filing for BK at this age seems like jumping the guyn. I don't know what to do.

Help! :-(

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iVillage Member
Registered: 04-12-2007
Sat, 05-02-2009 - 3:17am

My goodness, you sure have been through a lot!

iVillage Member
Registered: 10-16-2007
Sat, 05-02-2009 - 8:08am
Hi!
The ladies here will have great recommendations for you. As for the IRS, they will do taxes for individuals who make under a certain amount of money, which I am sure you could do because of your recent job loss. If there is one person to get in contact with it would definately be the IRS. Try giving them a call tell them your situation and see if they can help you file your taxes and then set up a payment plan with them.
I wish you luck.
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iVillage Member
Registered: 11-17-2007
Sat, 05-02-2009 - 9:43am

Good morning Sassy


My son lost his job several years ago and the only thing he could find was to work for this guy as

iVillage Member
Registered: 07-22-2008
Sat, 05-02-2009 - 9:54am

Hey there, and welcome. You have received some great advice already from the PP's. I agree, you should tackle one thing at a time. try your hardest not to see this as one huge problem, it's overwhelming.

Make a list of your issues. and then break those down into smaller actions/tasks you can take on to make things better.

For the IRS situation - the worst thing to do is ignore it. If you go to: www.irs.gov/advocate/index.html you can find a free tax advocate to assist and guide you. I advise to do this asap, as the IRS will take action if you don't. And if you have that postmarked envelope to show you just got your 2006 1099, bring that. If you have any correspondence from you, or from the company to you, asking for your 2006 1099 that maybe helpful too.

Hang in there, just remember to breathe and take one thing at a time. You'll get through this. please let us know how you're doing, and the progress you're making!

iVillage Member
Registered: 03-26-2007
Sat, 05-02-2009 - 1:46pm

Thanks for the replies, everyone.

First, the contracting and job situation is a little weird. I've been working for the same company since 2006 as a writer/editor, with a few side trips to other companies for W-2 income. This company has paid me as a 1099 for most of the three years I've been with them, although they FINALLY put me on their salaried payroll last summer, before laying me off in March. And the ironic thing is, once they laid me off, they realized they'd made a mistake, so they hired me back part-time, which is where I'm working the 10 hours a week. (Originally, they were going to pay me as a 1099 for this work, but my boss had them re-hire me as an hourly employee.) At this point, I feel like my relationship with this company is like that of an abused woman returning over and over again to a lover who keeps promising to change but never does.

Anyway, I had a hell of a time getting my 1099's from them. I asked payroll a few times to get the docs to me and they said they had no record of me working there. (!) When I have received my 1099 pay from them, they were essentially making me act as an employee -- I had a set schedule, was required to be in the building, etc. So essentially, I was an employee, they just weren't offering me benefits or taking taxes out of my paycheck. Unfortunately, the 1099's don't have a postmark on them or anything since I had them e-mailed to me at work. I'm not sure if I still have that e-mail or not. (I can check.)

As far as the IRS goes, can I go to jail? I'm really worried about that. It was never my intention to screw them over; I really had no idea how to deal with the tax stuff and figured I could deal with it when I was ready to. At one point, I honestly thought I wouldn't have to pay taxes on the 1099 income because I wasn't receiving any tax documents. Duh, Canuck. :-P

Regarding unemployment, I haven't filed yet. I didn't think there was any point because the amount I'm making at the part-time gig is more than my estimated weekly benefit amount. Also, the part-time job is temporary and I wanted to keep the UI benefits as a backup fund if/when I'm totally out of work.

I'm working with a therapist to get through some of this stuff. (She agreed to not charge me for the next few months.) Part of my problem is I keep seeing all these issues as ONE BIG PROBLEM and then I get scared and overwhelmed and paralyzed. I'm having a very hard time staying focused on my job search and can barely concentrate at the part-time job. I'm actually very smart and educated (B.A. in English), but I've convinced myself that no one will hire me because of the IRS and lawsuit crap. Also, I feel like I have very little social support. My parents are supportive to a point (although my dad thinks I'm a major financial f***-up and has told me so), but I have no boyfriend (that ended right when I started hearing from the lawyer who sued me) and all my female friends live far away. I think that's probably the hardest thing about this -- feeling like I have no one to go to for any kind of support. It's really just making things worse for me, at least psychologically. Sigh.

iVillage Member
Registered: 07-22-2008
Sat, 05-02-2009 - 2:02pm

i understand how all of this can be overwhelming and on top of that feeling like you have no support system. that's what we are here for :) you can come here as often as you need to. Sometimes just reading other people's posts/problems can make you feel like people really do understand what you are going through. you are definately not alone. No one here will think you are a financial f-up, I can assure you of that. okay? smiling....? at all?

I don't think the IRS can send you to jail. I do know that they will eventually garnish your wages, meaning they will order your company, even if you are a 1099 person, and take the money that you owe. they leave you with a certain amount of money per pay period. and that is it. So, I urge you to contact a irs advocate and at least let them know you acknowledge you owe taxes, and that even if you can't afford to pay anything right now, you are aware and are working on it.

keep coming back :)

iVillage Member
Registered: 04-12-2007
Sat, 05-02-2009 - 3:15pm

No, you cannot be sent to jail for owing taxes.

iVillage Member
Registered: 03-26-2007
Sat, 05-02-2009 - 4:16pm

Well, I guess that's some good news re: the tax mess. I remember thinking even way back when they hired me that it was weird that they were paying me as a 1099, but still controlling my work hours, etc. I even had a badge to let me into the building like the "real" employees, although I had to submit invoices to my department head, who often wouldn't sign off on them in a timely manner, leaving me to fight with him and AP to get my paychecks. (It was a nightmare.) To my knowledge, I'm the only one in my department that was treated like this. We did have freelance writers and graphic designers that we dealt/deal with, but they were treated like true 1099's -- they worked remotely, etc. I did this for a short time in 2007 when I lived in another state, but when I came back to my home state, the company rehired me -- as a 1099 that they essentially treated like an employee. (Sigh.)

I don't even know how to begin unraveling this IRS mess. In a way, I'd love to see what they'd have to say about the 1099 situation, but I'm afraid of jeopardizing my relationship with the company because I still need that paycheck for the time being. I don't even know how to file my tax returns. I tried doing the return the IRS is asking for (2007), but that one's tricky thanks to the 1099 and W-2 income (I worked for a bunch of temp agencies), plus I lived in Oregon and California that year. Just thinking about it makes my head hurt. I thought about going to H&R Block for help when I get some of my severance pay this week, but I've heard bad things about them. All I know is I think I'm really going to need some professional help with this crap -- I don't want to go to the IRS on my own. (They scare me!) I am seeing another bankruptcy attorney after work on Monday -- this will be my fourth. If he's like the others I've seen, he's going to demand too much money ($2000-4000 for a Chapter 13, $1500+ for a 7) and tell me to do my taxes myself even though I have no flippin' clue how to do them. (Can you tell the BK lawyers I've seen haven't impressed me much?)

iVillage Member
Registered: 11-17-2007
Sat, 05-02-2009 - 5:21pm

don't go to H&R Block that is what my son did and then when the mess happened they would not back him up.


Go to some little CPA that does taxes on the side but knows his business IT might be even cheaper to do that. Because H&R is like 20.00 for every page they do.


Look you are a smart lady you could do this yourself Just think of all the things you needed to do your work for that company and remember milage but if you are afraid it pays and is also tax deductable to go to some really good little guy that does taxes.


Oh another thing IRS just wants money not your body.


Mary Ann


If you want a friend to email personal to you can email me.


kimbler@bellsouth.net No one should be alone.


Mary Ann


iVillage Member
Registered: 10-02-2008
Sun, 05-03-2009 - 10:11am

Actually they can and will send

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