Collection Agency after client for Virginia taxes owed in 2006-2012

[Greta]

It's an enormous amount, letter received from Harris & Harris on behalf of Virginia taxes owed. Client is aged sixty, in poor health, has little money. He owns a modest house with mortgage. He asked whether the collection agency can put a lien on his house. He asked if he should put his house in a trust. This is all over my paygrade.

[sjrcpa]

1. Does client owe the money?

Putting house in a trust now would be a fraudulent conveyance.

The collection agency can't put a lien on the house. Virginia can.

[sjrcpa]

See if there is a low income taxpayer clinic, maybe at a local university that could help client.

[qbteachmt]

Is he judgement proof? Here is the reference with a list of the exemptions that cannot be collected against and hardship info:

https://www.tax.virginia.gov/collections

[George4Tacks]

How much does the client owe IRS? Sounds like time to review doing Offer in Compromise with VA & IRS. Counsel them to NOT go for any of those phone calls about getting them out of debt.

If you can't offer the service,  help them seek out an Enrolled Agent or CPA that can do it for them. 

[BobKamman]

When were the taxes assessed and what is the statute of limitations?

Does he acknowledge the debt?  Or is this the first he has heard about it?

Is he (still) in Virginia?

Have you checked to determine whether Virginia has already filed a lien on his property?

[BobKamman]

@George4Tacks isn't recommending contacting a lawyer because he was once bitten by one.  

[BobKamman · Accepted solution]

I am sure some EAs and CPAs know how to research Virginia statutes.  They're easy enough to find online.  But a lawyer could do it in 15 minutes.  The statute of limitations used to be 20 years, but then in 2010 they changed it to ten years, and in 2016 to seven years.  But the changes weren't retroactive.  My guess would be that Governor Youngkin's tax collectors turned this over to a collection agency as a last gasp before at least some of it becomes uncollectible because the statute is expiring.  

[George4Tacks]

@BobKamman George has never been bitten by a Vampire attorney. 🤔

I guess it would depend on the amount of debt, but in my area I know of no attorneys that do tax, other than tax court. We have many that do your favorite - TRUSTS! Some of them even do it well. 

I was bitten by an attorney last year. I should send you my YOUR FIRED e-mail and the drivel I got from him. I do not think he is the typical attorney, but just a bad choice on my part. 

Have you done OICs? My most memorable OIC was $12 - 52 year old disability retiree sharing a rental with his brother.  "He has no car. He had a bicycle, but it was stolen last week." This was also my quickest. I don't remember the total debt, but it was in the thousands.