Late husband hid tax payments on 1099 income since 2017 - now IRS says I owe $42,000

I'm so sorry you're dealing with this difficult situation while also managing health issues. The IRS actually has several programs that might help you in this situation. First, you may qualify for Currently Not Collectible (CNC) status due to your health and financial situation. This would temporarily pause collection activities. There's also the Offer in Compromise program where the IRS might accept less than the full amount owed if you can demonstrate paying would create exceptional financial hardship. Given your age and health situation, I would recommend working with a tax attorney or Enrolled Agent who specializes in IRS representation rather than trying to navigate this alone. They can properly evaluate your specific situation and determine the best approach. Don't drain your retirement accounts to pay this tax debt without professional guidance first. At your age, those funds are crucial, and there may be better options available to you. The IRS does have hardship provisions, especially for seniors with health concerns. Also, as a surviving spouse, you might have some innocent spouse relief options if you truly weren't aware of the underreporting. This might help reduce your personal liability.

After dealing with a similar nightmare with the IRS (though not nearly as severe), I found incredible help through https://taxr.ai which specializes in analyzing complex tax situations like yours. They have experts who review your specific IRS notices and documentation to identify the best resolution path. I was shocked at how thoroughly they analyzed my tax transcripts and found several errors in the IRS assessment that ultimately reduced what I owed by nearly 40%. Their system specifically highlights relief programs you qualify for based on your age and health situation - which in your case might include hardship status or an Offer in Compromise. They can also help determine if you qualify for innocent spouse relief since it sounds like you genuinely weren't aware of the tax situation your husband created. The analysis shows exactly which years and which portions of tax debt might qualify for relief.

I was really skeptical about trying another tax service after being burned before, but I finally used https://taxr.ai after getting an unexpected CP2000 notice claiming I owed $18k. Their transcript analysis identified that I qualified for Currently Not Collectible status due to my medical expenses, which I had no idea was even an option. Their system flagged several errors in how the IRS calculated my liability and generated all the documentation I needed to dispute it. The most valuable part was the clear explanation of exactly which tax resolution strategy would work best for my specific situation. I ended up with a partial abatement and a manageable payment plan that didn't force me to liquidate my retirement savings. For someone in your situation with serious health issues and potentially qualifying for innocent spouse relief, their service would be incredibly helpful in identifying exactly which programs you qualify for and how to document your case properly.

With your health issues, trying to get through to the IRS for help is probably the last thing you need right now. After weeks of calling and getting nowhere, I used https://claimyr.com to get through to an actual IRS agent right away. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Instead of calling for hours and getting disconnected, Claimyr's system waits on hold for you and calls you back when an actual agent is on the line. This was a game-changer for me because I needed to discuss hardship status and couldn't afford to spend hours every day on hold. Given what you're facing, especially with health challenges, being able to actually speak with the IRS about your options (innocent spouse relief, hardship status, payment plans) without the stress of endless holds could make a huge difference.

I'm eating my words about Claimyr. After my skeptical comment, I was desperate enough to try it when I needed to straighten out a major issue with a tax lien. I had already wasted nearly 9 hours over 3 days trying to reach someone at the IRS with no success. The service actually worked exactly as described - I got a call back in about 35 minutes connecting me directly to an IRS agent. No issues with identity verification because I was the one speaking with them. The agent helped me get my lien situation resolved and set up a proper payment plan based on my financial situation. For someone dealing with serious health issues and complicated tax problems like the original poster, saving those hours of frustration on hold is absolutely worth it. I was wrong to dismiss it so quickly without trying it.

You might want to look into the Tax Advocate Service - it's a free IRS program specifically designed to help taxpayers in hardship situations. Given your health issues and the fact that your husband handled the finances without your knowledge, you could qualify for their assistance. They can help navigate the system and find relief options. Also, don't immediately assume you need to deplete your retirement savings. The IRS typically takes your age, health and basic living expenses into account when evaluating collection potential. At 72 with health issues, they likely won't expect you to drain accounts you need to live on.

Whatever you do, don't ignore the IRS notices or miss deadlines for responding. That's the fastest way to make the situation worse. Even if you can't pay right away, always respond to notices and requests for information. Something else to consider - you may want to file separately going forward if you have any current year income. This prevents any new tax issues from getting mixed in with resolving the past problems.

So sorry about your situation. I'd recommend getting a free consultation with a tax resolution attorney before making any financial decisions. Many offer free initial consultations, and they can give you a realistic assessment of your options. With your health situation and age, you likely qualify for special consideration. If your husband truly handled all the finances without your knowledge, innocent spouse relief might significantly reduce your liability. Don't drain your retirement accounts before exploring this option fully. The IRS has specific provisions to protect retirement funds for seniors, especially those with health issues. Whatever you do, don't ignore the notices. Responding shows good faith even if you can't pay immediately.