Harassed for old debt, or debt you don't owe? The following may help.

[rpannier]

There are a few links and this story which I hope you find helpful

State statutes of limitations for old debts

Once a debt passes beyond the statute of limitation in your state, a debt collector no longer has the right to sue you for payment. You may still have a moral obligation to pay back an old, forgotten debt, but you can't be sued over it.

Any debt collector who threatens to sue you over a debt that is beyond the statute of limitation in your state is in violation of the Fair Debt Collection Practices Act.

The Chart can be found at:
http://www.bankrate.com/msn/news/cc/20040116b1.asp

The Fair Debt Collection Practices Act was passed in 1977 to protect consumers from abusive debt collectors. Here's a closer look at the rules a third-party debt collector must follow when collecting a debt.
This can be found at:
http://www.bankrate.com/msn/news/cc/20030519b1.asp

The original Article about this issue is at:
http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/ZombieDebtIsHardToKill.aspx

[CoffeeCat]

1. What about the IRS?

I'm wondering about the IRS?

I got a letter from the IRS stating that I didn't file tax returns for last year, and
for 1995. Last year, I filed jointly with my husband. I told the agent on the phone
this, and he clicked his keyboard and said, "Ok, you filed last year, but we still can't
find anything for 1995".

I was working and in college at the time. I know I filed. However, I do not have my
records for TWELVE YEARS back! I owed no money. I filed...same as the other years
during that time period.

I'm wondering if there is some statute of limitations on the IRS.

[Cerridwen]

3. I am not a lawyer - I think it's 10 years - get yourself a tax lawyer

or other knowledgeable professional you trust to confirm.

Just my $0.02.

[KansDem]

4. Doesn't the IRS say you should save records going back 7 years?

I may be wrong but I was under the impression that the IRS requires you save records for the last 7 years. If so, it would seem to me that they couldn't require you to file a tax return for any year(s) prior...

[pitohui]

6. there is no statute of limitations if you did not file

this is why you should always file to the best of your ability even if you cannot pay

if the irs has no record of your filing for 1995 and you have no record of your filing, i think it is safe to say that you did not file

you may need to hire a tax attorney if you are being "hit" for an exorbitant penalty, definitely you need an attorney if you are being dinged for tax evasion (a crimimal offense) otherwise, i would try sorting it out myself

one year i did not file state taxes because i calculated wrong and believed i did not owe, ultimately the penalty was only a few dollars, but as soon as i was notified of an issue, i did hop on the problem and work to resolve it immediately

don't try to delay in a matter of non filing, because there is no statute of limitations here, the statute only holds if you did honestly tried to file and made a mistake and some years passed, no filing at all means the offense is still active i guess? (not clear on why there is no statute of limitations on what seems to be, most commonly, a mistake of not doing some paperwork)

[MiniMe]

10. Where do you file?

There was 1 year that the IRS office in Philadelphia got overwhelmed with tax returns, and some of the workers started throwing them out. I don't remember what year it was, but mine was one of the ones that got tossed. I filed late, and there was no penalty.

[KansDem]

2. Hey! This is handy!

Thanks...:hi:

[BlooInBloo]

5. This is much better than the guy on here a few days ago, telling people to take out a loan....

... to pay off old debt.

[AzDar]

7. Kick!

:kick:

[A Brand New World]

8. This is very interesting. My mother-in-law, who is 87 and in a

nursing home now, has an old credit card debt from when her husband was alive 9 years ago. They had to charge his medications to this card in order to keep him alive for as long as they could. This was of course before Medicare paid for medications. She's tried and tried since then to pay as much as she can on the bill but no longer can since she's in the nursing home, since Jan. When she was paying on it, they would harass her to death, calling constantly to make sure she was sending in the payment. She hasn't heard from them since she moved and her phone was disconnected. I think because they know they can't sue her for the rest. They got what they could. She doesn't have anything anyway for them to sue for, even if they tried. Only her clothes, a few pieces of furniture and some knick-knacks. They can have it as far as I'm concerned, when she's gone, if they want it so bad. (BTW - she didn't tell us any of this til she moved into the nursing home because she was embarassed for us to know that she was so far in debt.) What's pitiful is that old people have to do such things in order to stay alive. But that's our health care system for you!

[fed-up]

9. the SOL clock starts fresh any time a payment is made......nt