Since January 2006 I have been calling the IRS and going to their offices trying to get an agreed to payment plan for payroll taxes and federal unemployment taxes that I was not able to pay while The Lazy Susan was open. With interest and fees these had soared to around $28,000 most recently.
Each time I talked to someone on the phone they told me they were unable to assist me due to the amount owed being over their limit. They told me I would either have to go see an agent in an office or just wait for them to contact me. So I went to an office trying to meet with an agent. The clerk looked up my account and then told me because of the amount, no agent would be able to assist me; I would have to wait for one to contact me. The lady went on to tell me that I could file an application for a payment plan and could send payments in the interim.
I took the application and completed it and gathered all the attachments they were requesting. The total packet was close to fifty pages. I also began sending $400 per month. During the past year we were contacted twice by letter requesting updates on our banking records and saying they needed more time to make a decision. I was almost to the point I didn’t think they were ever going to make a decision. That all changed when Amy returned home from her parents last week. On the door was a notice from the IRS telling her to call; in the mailbox was a certified letter saying if we didn’t pay $28,000 or agree to a payment plan within 30 days they would be taking our car and bank accounts.
After playing phone tag for several days, Amy finally set up a meeting with the agent for yesterday at 1:30. I told her to ask them if they could work with me by email or even if they could call my DSN line here in Afghanistan. I told her if they wouldn’t deal with me to do whatever she could to get a payment plan, even if it was much more than what we propose; we would just have to cut what we were paying someone else to get them out of our life. Amy was very optimistic about this meeting and told me that we were going to have the IRS gone after the meeting. She told me to pray about it (and a bunch of other people as well).
During the meeting, and some prior to it, Amy was able to bring up the fact that I’m deployed, we sold the house and everything else we could think of, we only had one old car, had two kids, Amy was in the Army, we didn’t file bankruptcy, and we were working hard to pay everything back. The IRS agent was immediately sympathetic to our situation, although he said regulations did not permit him to negotiate over email with me. He started off by telling Amy he only had authority to collect $12,600 of what he called trust fund debt. He then tells her that we would be able to drop off the radar screen altogether if we can get the trust fund debt down to less than $10,000.
He then tells her that he wants to wait about three weeks to meet again hinting that the purpose is so they can drag it out to give us time to come up with the $2,600. Excited, Amy leaves the office realizing that she has just had the $28,000 turn into $2,600. She then calls one of her friends to tell them the news, the same friend that had prayed with her just before going into the meeting. After hanging up she receives a call back from the IRS.
This time the agent says he has talked to his boss who is a veteran (he wanted to point that out) and they have decided to declare that Maxwell Enterprises, Inc. (the S Corporation I set up for The Lazy Susan) is defunct and that neither her or I will be held personally responsible for its debt. That means our $28,000 debt is now gone.
Even before the meeting I was telling Amy about how it would be impossible to have the IRS forgive that debt. Her response to me was that Jesus has paid a greater debt than this. I told her I know, but I have never heard of the IRS forgiving anything. Dave talks about how he paid the IRS payments for over seven years. Others that have a great deal of experience with the IRS have never heard of IRS debt being forgiven. Wow, God really is bigger than the IRS! I think I really needed to know that today!
We all need something to remind us that God is bigger than anything. I was so excited yesterday you would have thought it was my own debt forgiven. I knew it would all by okay, but I NEVER in a million years expected what happened. Way cool.
Comment by Debbie — July 26, 2007 @ 10:36 pm
Oh Joel, that is so great but I’m still holding my breath until you have that in writing. Please let us know when you get the official letter. Great news!! What is your total debt down to now?
Comment by Florence — July 26, 2007 @ 11:32 pm
I hear He’s bigger than the Boogie Man, too.
Thanks for the fabulous news to brighten our day, Joel.
Comment by ravenbrk — July 27, 2007 @ 12:28 am
Not that you really needed to be reminded but…
Matthew 7:7-8 but especially Matthew 21:22
John 14:13
John 15:7
Philippians 4:6 (thanksgiving)
I saw an interesting web flash… What I SAW was “you get what you pray for” — what they WROTE was “you get what you pay for”. Some might consider that the same thing.
Comment by Withheld — July 27, 2007 @ 3:10 am
Hi Joel!
How wonderful!!! Congratulations to you and Amy.
Joey was very excited to see that we “found” you. Your letter to him has yet to arrive. How impressive you wrote him so promptly!
Do you have another email address that he could write you at, or do you prefer this one?
We spent the weekend down at the University of Notre Dame, my husband’s alma mater. Joey lit a candle for you at the Grotto. This is a sacred custom for us and it was very sweet to see him choose you to receive all of his prayers at this most special place.
Blessings,
the O’Hannigan Family
Comment by Mary O'Hannigan — July 27, 2007 @ 5:11 pm
Joel,
That is fantastic news!
I’m currently in a very similar situation. I am trying to have an offer accepted. But the first challenge is getting them to listen.
I have emailed and phoned every day. Recently, I have had to change approach and think of reasons to chase them.
They just say “you may hear soon”.
Very frustrating when all you want to do is pay!
I couldn’t wish for the same outcome as you, but I do pray that they will at least tell us “yes”, “no” or otherwise so we can decide whether or not to go bankrupt.
Wishing you continued luck (or is it?).
Ian
Comment by Ian Denny — July 27, 2007 @ 6:35 pm
Thanks all, I appreciate the comments!
Ian,
I would keep after it, but I would also challenge you to not hinge your bankruptcy decision on one case. I made my decision not to file bankruptcy based on the fact I could support the four walls (food, shelter, transportation, cothing) and still have money left over to pay those that I owed.
Comment by Joel — July 27, 2007 @ 8:28 pm
Joel,
I have been reading yours and Amy’s blogs for a while now, having found them via a search for Dave Ramsey. I am so glad you posted this comment about the IRS, because I had been putting off calling them after ignoring their letters for a while. I received a Notice to Levy last week and was even more paralyzed about calling…until I saw your post. I called them and was able to work out an arrangement and the agent was truly very nice and understanding. God truly works in mysterious ways. You never know who you are helping when you post, so keep up the good work!
Comment by Anonymous — July 28, 2007 @ 5:42 pm
Thanks so much, I am glad I could help. I have always found when I was faced with fear that prayer and communication are the two best things you can do. Glad to have you following along!
Comment by Joel — July 28, 2007 @ 9:03 pm
You and Amy encourage us and so many others. We love you guys and are praying for your family as you are apart. What a bonus with the IRS situation. Thanks for being such positive examples to us all.
Kelly
Comment by Kelly — July 29, 2007 @ 3:48 am
Joel–I sat behind you at the Dave Ramsey event in KC. I am so thrilled for you!!!! Praise God for His abundant Grace! You and Amy so deserve this! You have worked so hard and have tried to honor your debts. You are truly an inspiration! Thank you for your website. Thank you for your dedication and thank you for giving us all a reminder of how great God is! Gayle
Comment by Gayle McLaughlin — July 30, 2007 @ 1:16 am
well, this just goes to show you that God is more powerful than the IRS…
What it shows more is his providence in protecting you from the beginning having this debt owed to the IRS able to be forgiven within THEIR regulations. He was watching over you from the very day you started to accumulate this debt.
He did that and left to you the decision to be good stewards and act with integrity. If you had lied to IRS or were less than forthcoming, you know they would have come down on you like a ton o’ bricks, but you didn’t.
I have heard stories like this from other people going through a business bankruptcy, or some other situation that has left them with little assets but a big tax bill from the IRS and state revenue agencies… In all the cases I hear that the IRS is great as long as you bear your soul to them and don’t lie… The state agencies are a different breed, out for blood, they are ( at least thats what I hear about Washington state.)
Comment by Zintradi — July 30, 2007 @ 3:16 am
I was so excited when Amy called to give me the news. Excited to hear a modern day miracle…truly! God is amazing and I am so happy He blessed your family in this way! What a testimony of God’s love for you and your family.
Praying God’s continued blessings on you and your family!
Laura
Comment by Laura — July 30, 2007 @ 3:38 am
Oh that’s awesome news. God’s amazing, not even the IRS is beyond his grasp!!
Comment by Audrey — July 31, 2007 @ 12:08 am
That is awesome news for you guys! I’m very happy for you, and how wonderful that the IRS was able to clear the deck on this item. WhooHOO!!
Comment by Barb — July 31, 2007 @ 4:00 am
I am so Happy for you guys!!!!!!! What a Big Weight lifted off of your Shoulders. I want to ask you to pray for me and my Husband. We are needing the money for a Trailer, and the Finances to get it all set up. My husband has a Injury Settlement from work that will be coming through, and we are praying that that will take care of what we need. But it is one of those deals that you don’t know when it will come or how much it will be. I end up making myself sick from worrying about it. Thanks, Karen
Comment by Karen — July 31, 2007 @ 7:22 pm
Wow! What an awesome testimony to God’s greatness!
You have been blessed.
Comment by Christy — August 1, 2007 @ 9:53 pm
Amazing! I’m so happy for you guys-what a huge weight that’s been lifted I’m sure. God provides, doesn’t He?
Comment by Erin — August 3, 2007 @ 5:23 am
Praise God!!
Comment by Johnnie — August 5, 2007 @ 11:21 pm