In my last post I discussed Joe and Mary and their $187,000 that they owe in Back Taxes to the IRS and the $28,000 that they owe to the State of Utah.  Joe’s and Mary’s combined income is $138,000.  Let’s look at their assets:

  • Joe and Mary Home – $480,000, mortgage $332,000, $50,000 Home Equity line used up
  • Joe owns a 2014 Cadillac Escalade, no loan, worth $12,000
  • Mary owns a 2014 Honda Accord, no loan, worth $4,500
  • Mary has a 401k worth $78,000
  • Joe and Mary have $1,000 in their checking account and $750 in their savings account

Joe’s and Mary’s monthly expenses:

  • Mortgage $3,385
  • Home Equity Line $175
  • Utilities – $675
  • Auto Expense $1,000
  • Health Insurance $695
  • Union Dues – Mary $50 – Joe $80
  • Disney Time Share $375
  • Credit Cards $200/min pmt
  • Tithes $2,000 a year
  • Summer camps $4,500
  • Joe’s Meds $200 – month
  • Current Taxes:
    • Joe – $2,075
    • Mary $800
  • They borrowed $4,500 from Mary’s mom to pay for us to do an Offer in Compromise

In my next post we will do the math.  If you or someone you know has tax problems, feel free to reach out and contact us. (801) 532-7080 – ask for Kent.  https://strongandhanni.com/attorneys/attorney-kent-brown/