Cracking the Code - and the doctor's wife

[Famspear]

A user called ANNARN" (Anna Herrick) at losthorizons writes (with bolding and paragraph breaks added my me, for readability):

I am not a stupid person (just blond going gray). I bought 2 CtC books. I have read the book 3 times. I graduated from RN school with honors. I do not file with my husband who is a doctor. BAD PART:his ex wife left him with 350,000 back taxes and penalties that took it to 450,000 after she died. She was an evil woman. Her kids hated her and they didn't even have a funeral for her. Although they were separated they never divorced and filed together. He was so busy and they did not live together and it piled up. He gets so much mail the mailman commented on it. It was difficult for him to get to everything but he claims responsibility for not being more diligent on following up on what was going on. So I'm not saying he's a victimized innocent man. He is a busy man and his patients and work mean more to him than what he was putting on the back burner.

That being said I'll tell you my husband is not a "rich doctor" and we are a little higher up on the food chain but we live modestly and I love him to death. I don't want to lose him because of literally worring [sic] himself to death l We pay the IRS $5,000 a month and almost have state taxes paid off.

Then I hear about Pete (God be with you) Pete and I buy the book.

Problem: We had all our taxes paid for last year and depended on someone to do an offer and compromise and they did it incorrectly. So guess what? Here we are into our next year and have more taxes.

My husband is 75 and works his ass off. He filed for an extension. I wanted to file CTC this year but the information is so overwhelming and we are definitely under the scrutiny of the IRS.

If we have to pay all taxes and penalties using his retirement money we are prepared to work until we drop dead. He works as a contracted doctor for GM and Delphi and gets 1099 misc 5 or 6 of them.

I've been reading your posts and I know you guys stick together and I am a newbie but I feel empowered because of your posts and information, yet stupid. Is the best thing for us to do is file CTC for him and hope some chimpanzee at the IRS will slip it through and then do the offer and compromise or should be bow to the crooks and do it their way until we are out of trouble?--

I know Petes in trouble and I also know he is smarter than they [the prosecutors] are[,] so I am not afraid to file CTC.

We have a sizable house we can offer in compromise and our IRS agent assigned to us, states she thinks because of his age they will settle for the house. We cannot even offer and compromise now because we have to settle taxes 2008. What do you think?

I am going to do CTC next year but am still trying to muddle through all the info to turn in a clean form. We continue to file separately.

Neither of us work for the government but he gets Medicare payments through a small 1 day a week practice of faithful patients and we keep getting more requests from more people. My husband is a good man and people he sees at GM want to change to him as their family doctor so he is getting more patients all the time. His Medicare income is small so if we have to pay taxes on that, no problem. Even though Medicare doesn't tell patients to go to Dr. Herrick, they do have a book of participating providers people can choose from so I think this is a form of referral. Medicare goes through an agency for us called Wisconsin Physician Service to pay us and now they are even using the Blues insurance companies to make payments for them? I apologize for the long post but I'd like opinions, info anything you can give me to expedite this. A lot of people think doctors are real rich but believe me Medicare has beat the sh** out of them. So please judge them as you meet them.

I need help in a nutshell: To correct a 1099 misc 4852 specifies 1099 R.

What form do I use? Does any one out there know where to direct me to the fastest reference of how do to a CTC Properly? I've read through the successful stories and found only a couple of 1040's.

Someone let Pete know we bought a third book and are giving them to people who are in trouble and mad at the IRS. And we will give Pete 10% of anything we get taken off our taxes, and abatements if anything. He needs help and he's got the brains to keep this going. When we get going comfortably with CTC clean returns-our vow is to return to Pete 10%. Any idiot tax lawyer out there would go into business filing CTC for people and taking 10% of the return if they had any brains. Thank you for reading this---anyone!!
I need some good advice. He treats a lot of people here in Michigan for free. That's how good of a man he is.
I submit this very humbly,
Anna Herrick RN[ . . . . ]

http://www.losthorizons.com/phpBB/viewtopic.php?t=1715

EDIT: I like the part where she says that the CtC guys "stick together." Obviously, she has not been paying attention, or hasn't read enough posts over there to see how quickly Pete's Preposterous Pussyfooters will throw someone under the bus.

[notorial dissent]

I will have to take exception to the poster's very first sentence, her actions of the last part of the sentence absolutely refute her primary statement. I keep wondering from reading her posting if she has picked up any do it yourself lobotomy manuals lately. She might as well from what I can see, since if she goes ahead with her intended self immolation it will have the same effect.

I will say that I have a hard time believing that anyone owing that much in taxes doesn’t have the money to get a real CPA and tax attorney to sort this mess out, since he obviously can’t or won’t do them himself, and this course of action will only make things that much worse for him. If he'd just spent that little bit of money when he almost "divorced" wife one, he wouldn't be owing all this money now I'm betting.

I suspect that we can chalk up another set of lives ruined by “his magnificence”.
edited for missing sentence

[Doktor Avalanche]

[Randall]

I am not a stupid person

Okay, fair enough, but you write about YOUR husband

Although they were separated they never divorced

So YOUR husband never divorced his former wife and YOUR not stupid?
Or did I misread and you are the ex the kids hate?

I am going to do CTC next year

more proof that your really are stupid.

Neither of us work for the government but he gets Medicare payments

Which provides a federal connection, thereby undercutting Pete's baloney anyways.

EDIT: My bad, I missed the part where the ex-wife died. Sorry.

[Thule]

A useful glimse into the reasoning that leads some people to drink the Kool-Aid.

- Desperate economic situation
- "Someone else's" fault

[Thule]

Neither of us work for the government but he gets Medicare payments

Which provides a federal connection, thereby undercutting Pete's baloney anyways.

No biggie. Considering the LHs talent for twisting and bending the words, I am sure that they will have no problem arguing that this is not a real federal connection, and that the good doctor should file CtC and buy a t-shirt as soon as possible.

And if they get caught, the MiniTrue will have no problem stating that this is an obvious federal connection, ANNARN has clearly misunderstood the book, they never qualified for CtC, and no LostHead has ever said anything else. And ANNARN should be banned for spreading lies and misinformation.

[LPC]

BAD PART:his ex wife left him with 350,000 back taxes and penalties that took it to 450,000 after she died.

I'm still puzzling over how that could have happened. Even assuming that the wife of a doctor earned enough money to incur $350,000 in back taxes, how was she able to transfer those liabilities to her husband?

The two scenarios that make the most sense are:

1. Wife 1 didn't earn that much money, but she prepared the tax returns for the two of them and now it's convenient to blame her for husband's failure to pay the taxes that were due on his own income.

2. Wife 1 earned enough income to incur $350,000 in tax and husband was stupid enough to sign a joint return without checking to see that the tax was paid, and is now too stupid to ask for innocent spouse relief (which might or might not apply).

Notice, however, that in each case husband must share some responsibility for what happened because he apparently relied on evil wife 1 for tax return preparation.

Now, husband is going to be much better off because he is going to rely on "not stupid" wife 2 for tax return preparation.

Anyone else see a pattern here?

[darling]

So YOUR husband never divorced his former wife and YOUR not stupid?
Or did I misread and you are the ex the kids hate?

First wife = dead.

[Randall]

So YOUR husband never divorced his former wife and YOUR not stupid?
Or did I misread and you are the ex the kids hate?

First wife = dead.

Thanks, I caught my error reading Dan's post and edited my post about the same time you wrote yours.

[notorial dissent]

However, I still think Dan’s points pretty well cover the situation. Something, and it’s not just there tax returns that don’t add up.

[ASITStands]

Without seeing the returns it is all speculation, so here is mine.

What if one year they sold a house and realized a very substantial gain, say $350,000? Give or take some. If you don't file or file all zeroes, then you have that one big, sudden block of income to deal with.

Just a thought.

And, it's very often the most logical explanation.

What's even more interesting is the fact that filing a return could entirely or substantially eliminate the tax debt by a proper treatment of the real estates proceeds. Suppose they had reinvested the proceeds in another home of equal or greater value?

Another explanation could be stock sales. Even if they could not entirely eliminate the tax debt, they could potentially reduce it to a manageable level all by filing a return.

[Weston White]

What is really sad about this all is that you actually belief that the people posting at LH actually visit this forum to read your insights... newsflash, with exception to PH himself, which he will never actually admit to of course, they don't!

[Famspear]

What is really sad about this all is that you actually belief [sic] that the people posting at LH actually visit this forum to read your insights... newsflash, with exception to PH himself, which he will never actually admit to of course, they don't!

People posting at losthorizons do visit Quatloos to read the insights of various Quatloos regulars. You yourself did it, Weston, before you were banned at losthorizons. Several losthorizons regulars have posted comments about postings at Quatloos.