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tax debt

It has not been a good year for Eric Nederlander.

Nederlander is probably best known as the guy that Jessica Sklar married for a few weeks before she left him to marry Jerry Seinfeld (ouch). Nederlander rebounded and subsequently married child psychologist Lindsay Kupferman. The two had a baby in 2007 and Kupferman filed for divorce in 2008.

Adding to his woes, Nederlander and Kupferman, who were named together despite the divorce proceedings, have been liened by the IRS for $223,693. According to the New York Post (no giggles, please), Nederlander had a federal tax lien in 2002 for $207,365 and an outstanding bill from the State of New York State for $251,000.

Could it get any worse for him?

(Hat tip: Maddy)

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Taxpayer asks:

We owed taxes for 2007 when we filed. We also had owed taxes from a few years ago. I was under the impression that the IRS would deduct the amount of taxes owed for any prior year(s) from the stimulus payment, but would not affect the 2007 taxes. We just received letters from the IRS stating that they first deducted the amount of taxes owed for 2007 from our stimulus payment. Then we received a second letter saying the remaining balance of the stimulus payment went toward taxes owed from a few years ago.

While it is nice to have the IRS almost payed off, it would have been nice to see a little bit of the stimulus payment. Could you clarify this please and also post it on your site if it is accurate because there is a lot of misinformation about this being printed, including on your site.

Taxgirl says:

If you owe federal liability for income tax from prior years, it will be applied towards your rebate check; this is settled.

If you owe for 2007, I am not 100% sure that it will be taken from your rebate check though I have advised folks to pay liability in order to avoid any problems.

I do not know for certain (maybe my colleagues could chime in) but my gut would be that those taxpayers with no prior year liabilities who are paying 2007 in an agreed upon installment plan might still be eligible for a rebate – I have nothing to base this on but anecdotes.

However, as you owe prior years – and I am guessing are not on a payment plan for 2007 – the IRS exercised the option to offset. Rebates and refunds are always applied to the most recent unpaid year first.

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

Have a question? Ask the taxgirl!

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