Owe IRS Tax Debt? Five Tips For Surviving the IRS Collections Process
Owe Debt? Do you owe the IRS? If you do, you need to think about a solution and fast.
The IRS is the most powerful collection agency in the world.
And when Uncle Sam doesn't get his money he gets mad and unleashes his team of IRS Hitmen to make you pay.
Follow these five tips to ensure you survive the IRS's brutal collections process.
1.
Put the IRS Bills Before Your Other Bills The IRS is its own judge and jury.
They don't need to go through a court system to Garnish Wages, Freeze your bank accounts, Seize your property, or Seize your other assets.
Your other collectors can call you, but that is usually where their collection efforts end.
Pay the IRS before everyone else! 2.
You Can Avoid IRS Phone Calls Did you know that you don't have to deal with the IRS by phone? You can have you file sent to a local office.
That way you can meet with a tax collector in person.
3.
Anything You Say Can and WILL be Used Against You Yes, this applies to IRS Debt, too! If you reveal any detailed information about your finances to the IRS they will use that information to collect from you.
And remember, if you lie to an IRS agent about your assets or anything else, it's a crime punishable by up to five years in prison.
4.
Can't Pay? Try a Payment Plan You probably can't pay your taxes all at once.
That's why the IRS offers the "Installment Agreement" program.
If you qualify, the IRS will allow you to make monthly payments.
But be prepared! Negotiating for this plan is not easy.
You'll need to round up documents to prove you need this plan.
5.
You Can Request a Hardship Plan No Job? No Money? Other creditors banging down your door? All your assets already repossessed? If your situation is bleak, you might qualify for a Hardship Plan with the IRS.
If you qualify, you won't hear from the IRS for up to six months.
Use this small window of time wisely, because collection efforts will resume full force when you're time is up.
And don't forget, interest and penalties will still accrue on your account.
Fight Back! Most of these options aren't easy.
Let's face it, you let your account get this far.
And now Uncle Sam is tired of waiting.
If a Hardship or Monthly Installment plan is denied the first time, try to apply again.
With the IRS, you can't give up without a fight.
Now You Have the Smoking Gun...
Use it!
The IRS is the most powerful collection agency in the world.
And when Uncle Sam doesn't get his money he gets mad and unleashes his team of IRS Hitmen to make you pay.
Follow these five tips to ensure you survive the IRS's brutal collections process.
1.
Put the IRS Bills Before Your Other Bills The IRS is its own judge and jury.
They don't need to go through a court system to Garnish Wages, Freeze your bank accounts, Seize your property, or Seize your other assets.
Your other collectors can call you, but that is usually where their collection efforts end.
Pay the IRS before everyone else! 2.
You Can Avoid IRS Phone Calls Did you know that you don't have to deal with the IRS by phone? You can have you file sent to a local office.
That way you can meet with a tax collector in person.
3.
Anything You Say Can and WILL be Used Against You Yes, this applies to IRS Debt, too! If you reveal any detailed information about your finances to the IRS they will use that information to collect from you.
And remember, if you lie to an IRS agent about your assets or anything else, it's a crime punishable by up to five years in prison.
4.
Can't Pay? Try a Payment Plan You probably can't pay your taxes all at once.
That's why the IRS offers the "Installment Agreement" program.
If you qualify, the IRS will allow you to make monthly payments.
But be prepared! Negotiating for this plan is not easy.
You'll need to round up documents to prove you need this plan.
5.
You Can Request a Hardship Plan No Job? No Money? Other creditors banging down your door? All your assets already repossessed? If your situation is bleak, you might qualify for a Hardship Plan with the IRS.
If you qualify, you won't hear from the IRS for up to six months.
Use this small window of time wisely, because collection efforts will resume full force when you're time is up.
And don't forget, interest and penalties will still accrue on your account.
Fight Back! Most of these options aren't easy.
Let's face it, you let your account get this far.
And now Uncle Sam is tired of waiting.
If a Hardship or Monthly Installment plan is denied the first time, try to apply again.
With the IRS, you can't give up without a fight.
Now You Have the Smoking Gun...
Use it!
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