I know you can get payment plans if you can't pay for a single year's worth of taxes but Idk how rolling over other payment plans work with this. But it would be hilarious if this happens because he would really get fucked
He's already on two of them for the past 2 years. The IRS will happily set up a 3rd payment plan with the fees and interest attached. They'll get their money regardless, and now they're going to get a little more.
How long can he keep using his IRS credit card?
You think maybe the monthly $750 is another payment plan perhaps? I was starting to lean that way based on the payment timing from the leaks...
As long as he can keep all the juggling balls in the air. (those children's entertainer skills finally coming in handy)
The IRS has the ability to disapprove more payment plans but the criteria are not clear. All I could find was this statement from the IRS' site saying they can be rejected after which the debtor has 30 days to make arrangements before collections begin:
While this website says anyone who meets these four criteria:
Automatically qualifies but there is not an equivalent set of criteria for disqualification.
One thing to note is that presumably his 2018 Back Taxes ($500 per month) either have already or should soon be finished up sometime this year (assuming that additional payment plans can't be "rolled in" to this existing one). Someone else may have a better idea about the expected timeline for this one.
Like a big $16,000 tip
Huh, so Uncle Sam could potentially be his whale in waiting and bail him out, saving him from financial ruin.Like a big $16,000 tip
No Uncle Sam is going to demand he pay up next year
I was under the impression that debt discharged from bankruptcy proceedings were exempt, but I guess foreclosure started before he filed so that wouldn't matter right? This shit was so long ago now I can't even remember lol
Midfirst was exempt from the Bankruptcy though. So this was a foreclosure I believe. Rules should be different unless there is some weird special exemption
If we base it on what he attempted to "fundraise", he owed something like $17k for 2018. He got maybe $2000 total from his begathons and the $4000 from his mom, but as we all know, the likelihood of him having actually spent that money on his taxes is....low. Since the $500 monthly payment was still (right?) showing up in the bank leaks from 2021, I'd venture to guess he didn't. I do think you're right, though. He ought to be finishing that plan up soon. But he still has the 2019 back taxes and the 2020 back taxes (presumably) plus now 2021 back taxes.
Is there a point where the taxman takes a look at Phil's earnings and his inability to pay taxes without a payment plan and tells him "Fuck off, pay up now, or I'm beginning legal action"? Or will they always opt for a payment plan when someone is willing (sorry I'm not American, and also I don't have any experience with taxes I work in academia and my stipend isn't taxable)? Like, is there a limit to the amount of years, either consecutive or cumulatively, where you can pay via a payment plan?
I wouldn't expect much else. MidFirst probably isn't going to bother going after the deficiency, so unless the difference is counted as income due to being considered forgiven debt, this particular arc is complete.Goddamnit. Stop blueballing me and let the topic rest till something does happen. Every time i see a new post...
See below v
It sounds like you are getting two different legal concepts confused: When MidFirst intervened in the bankruptcy they filed a request to lift the stay against the foreclosure and the judge granted it (Items 14, 15, and 22 in the docket here). This allowed them to continue the foreclosure while the bankruptcy was ongoing, but for reasons I cannot explain they then sat on their hands and did nothing until long after the foreclosure was concluded.
I'm pretty sure this is not how Chapter 7 works because the whole idea is to erase debts altogether. The problem with treating the forgiven deficiency as income is that it would make discharging an underwater property impossible even for honest debtors because the lienholder could always pursue them for (at a minimum) the tax on the deficiency on the property.
Phil has more than $120,000 in equity on the Snort Fort (not putting an exact number on it because assessments are all over the place and he has paid down more of the mortgage since the bankruptcy) plus a smaller amount of equity in his Toyota (I can't be bothered to look, not sorry). Unless or until the tax debt he cannot pay comes close to that amount, the IRS and the bank which holds his mortgage (I think it's called Arvest?) will not seriously consider suing for foreclosure because they are near-certain to get their money eventually.
I guess I'm more thinking about a decade down the line, and how things will look for the late-stage/post-streaming era. I appreciate that so long as he's earning money as he is he'll be able to keep his head above the water, but eventually there's a critical point where he can't keep up. I think the post of yours that @actually cited covered everything I was after
I'd say that whatever it is, it just wasn't worth the bother of trying to collect it, so they said fuck it.
Also he doesn't even have wages as such. Unless he has some income source I missed, he has no W-4 income.
If Phil has been relying on a payment plan five years in a row, whether it's because of Champions or not, it WILL be from this point forward, so it seems a foregone conclusion that him reaching a tax debt that rivals his gacha spending is inevitable. He's not paying enough per month to keep it from climbing year after year, because if he could do that, he wouldn't be having this problem to begin with.