AyatollahGondola
02-03-2009, 03:25 PM
No, it's not a misprinthttp://www.saveourstate.org/vforums/images/smilies/wink.gif,
I've obtained the most recent documents available from the state pertaining to the offer in compromise program at the State Tax Board. This program was designed to get bad debts off the state books, and presumably get the tax debtor back in the system as a payee instead of a continuing liability. There are restrictions. You have to divorce yourself from the old failing enterprise, and consign a portion of your income over the next few years to the state, or pay an offered amount in total right away. And you have to give the state all the info they ask for first, so they can make a decision...or come and get your assets if you have any. Do the taxpayers benefit? Hard to say. In nearly a years time, there's just not that many, as you can see. And we would never know what becomes of the tax debtors as far as future tax payments after they are released from the debt, unless of course, they become debtors again in a public venue. But, from another standpoint, if you get worked into a financial corner in which you don't seem to have the ability to ever pay off an incurred debt to the tax man, you are effectively in debtors prison. Any wages you earn, money you accumulate, property you acquire, business you operate, lottery winnings or death benefits you are willed are always subject to levy, siezure or lien. In California, that pretty much limits you to a 50,000 piece of land, and less than $7,500 worth of car, clothes, tools of the trade, household furnishings, food, and cash at any one time that you can call your own, and they can't take. and that of course doesn't mean you can have the 7500.00 in cash on you either. The amounts vary for each item. The car can't be worth more than 1500.00 for instance. So how productive would a tax debtor be if he could only have a house and land worth 50K, and a combined personal property aggregate of 7K? Wouldn't be much incentive to go out and get a job where your earnings are garnished to the point you couldn't pay the 50K house payment anyway, right? How useful would a 1500.00 car be? Not very....
Face it; You'd be a miserable wretch applying for every gimme program and healthcare subsidy there was in the state. So this may be an option. But is it fair? I don't know. I can see one case which seems really, really fair to the debtor, settling a debt of nearly 3/4 of a million for 25K. But who knows what the circumstances were. I'm trying to find out, but records requests and searches are time consuming and futile sometimes. But in a few of these cases, I gotta wonder why they even took the trouble. When the debt is less than a thousand, and you settle for 25%, you must be in dire straits or on a very fixed income and nearly bedridden for the next few years. Which is, what I presume, the situation in a case like that.
Anyway, here's a link to my website again so you can open the attached files and see what happens when you throw yourself on the mercy of the tax man
http://publicdocumentdistributors.co...?p=193#post193 (http://publicdocumentdistributors.com/forums/showthread.php?p=193#post193)
Quote:
Taxpayer Name
(listed on official documents)
Amount of Unpaid Tax, Penalties and Interest
$765,875.78
Amount Offered on Behalf of the Taxpayer
$25,000.00
Why the Compromise is in the Best Interests of the State of California
The amount of the accepted offer, $25,000.00, represents the most the
state can expect to collect from the taxpayer's assets or income within a
reasonable period of time. The taxpayer does not have reasonable
prospects of acquiring increased income or assets that would enable the
taxpayer to satisfy a greater amount of liability than the compromised
amount within a reasonable amount of time.
I've obtained the most recent documents available from the state pertaining to the offer in compromise program at the State Tax Board. This program was designed to get bad debts off the state books, and presumably get the tax debtor back in the system as a payee instead of a continuing liability. There are restrictions. You have to divorce yourself from the old failing enterprise, and consign a portion of your income over the next few years to the state, or pay an offered amount in total right away. And you have to give the state all the info they ask for first, so they can make a decision...or come and get your assets if you have any. Do the taxpayers benefit? Hard to say. In nearly a years time, there's just not that many, as you can see. And we would never know what becomes of the tax debtors as far as future tax payments after they are released from the debt, unless of course, they become debtors again in a public venue. But, from another standpoint, if you get worked into a financial corner in which you don't seem to have the ability to ever pay off an incurred debt to the tax man, you are effectively in debtors prison. Any wages you earn, money you accumulate, property you acquire, business you operate, lottery winnings or death benefits you are willed are always subject to levy, siezure or lien. In California, that pretty much limits you to a 50,000 piece of land, and less than $7,500 worth of car, clothes, tools of the trade, household furnishings, food, and cash at any one time that you can call your own, and they can't take. and that of course doesn't mean you can have the 7500.00 in cash on you either. The amounts vary for each item. The car can't be worth more than 1500.00 for instance. So how productive would a tax debtor be if he could only have a house and land worth 50K, and a combined personal property aggregate of 7K? Wouldn't be much incentive to go out and get a job where your earnings are garnished to the point you couldn't pay the 50K house payment anyway, right? How useful would a 1500.00 car be? Not very....
Face it; You'd be a miserable wretch applying for every gimme program and healthcare subsidy there was in the state. So this may be an option. But is it fair? I don't know. I can see one case which seems really, really fair to the debtor, settling a debt of nearly 3/4 of a million for 25K. But who knows what the circumstances were. I'm trying to find out, but records requests and searches are time consuming and futile sometimes. But in a few of these cases, I gotta wonder why they even took the trouble. When the debt is less than a thousand, and you settle for 25%, you must be in dire straits or on a very fixed income and nearly bedridden for the next few years. Which is, what I presume, the situation in a case like that.
Anyway, here's a link to my website again so you can open the attached files and see what happens when you throw yourself on the mercy of the tax man
http://publicdocumentdistributors.co...?p=193#post193 (http://publicdocumentdistributors.com/forums/showthread.php?p=193#post193)
Quote:
Taxpayer Name
(listed on official documents)
Amount of Unpaid Tax, Penalties and Interest
$765,875.78
Amount Offered on Behalf of the Taxpayer
$25,000.00
Why the Compromise is in the Best Interests of the State of California
The amount of the accepted offer, $25,000.00, represents the most the
state can expect to collect from the taxpayer's assets or income within a
reasonable period of time. The taxpayer does not have reasonable
prospects of acquiring increased income or assets that would enable the
taxpayer to satisfy a greater amount of liability than the compromised
amount within a reasonable amount of time.