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Okay, so I think I’m at my wit’s end here. I’ve been trying to help my dad settle his tax debt (about 55% of his income worth of debt) and he’s in jeopardy of getting a levy on his house. For context, my mom always handled financial stuff, but they separated in 2024, then my dad had a total loss fire, then they officially got divorced in January of last year. When they were married, she put him in a mountain of debt because of her failing business, so now he’s taking the fall. He can’t afford to pay it, and I’m trying to look into tax relief options, but I don’t even know if that is the best way to go about this. I’m 23, and I’m still learning how to do all of this since it’s foreign to me. Any advice would be greatly appreciated.
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Okay, so I think I’m at my wit’s end here. I’ve been trying to help my dad settle his tax debt (about 55% of his income worth of debt) and he’s in jeopardy of getting a levy on his house. For context, my mom always handled financial stuff, but they separated in 2024, then my dad had a total loss fire, then they officially got divorced in January of last year. When they were married, she put him in a mountain of debt because of her failing business, so now he’s taking the fall. He can’t afford to pay it, and I’m trying to look into tax relief options, but I don’t even know if that is the best way to go about this. I’m 23, and I’m still learning how to do all of this since it’s foreign to me. Any advice would be greatly appreciated.
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This forum is a great place for this kind of advice! Details that would be helpful to help you:
Dads income
Total amount of tax debt and any payment options that exist for him
Dads expenses - specifics on where this money is going
Dad's retirement situation -
Welcome
Sorry you are dealing with this.
As already stated, the more details you can provide about this situation, the better.
List as many timelines, dollar amounts, etc. that you canBrianComment
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To be clear, none of this is your problem.
Now to fix his problem(s).
#1 Hire a divorce lawyer. Have him hire a lawyer that is so scary even he doesn't like them.
#2 It isn't / wasn't "her" business, it was "their" business. They were married at the time, and he was taking on the debt. If it is truly her business debt, he and the lawyer should get to work proving it.
#3 Total loss fire. So did he not have insurance? That was his choice to gamble like that.
#4 is this tax debt from her business?
#5 he lost his house in a fire, but they are going to put a levy on it?
You're just getting started. Don't ruin yourself financially by trying to fix your parents' screwups.Comment
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My friend been through a similar situation helping family sort out heavy tax debt and what actually helped was breaking it into steps: checking IRS hardship options, installment agreement or offer in compromise before a levy happens, and gathering all income/expense proof first.Comment
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