Do You Owe the IRS But Can’t Pay? Here Are All Your Options
Tax debt is very different from your “regular” debt, because when it comes to taxes, it’s a federal issue, and unlike other debt, a federal tax issue cannot and will not be ignored. Ignoring your tax debt is something that shouldn’t be taken lightly. Doing so will result in serious consequences that could disrupt your life.
The good news is that such serious consequences can all be avoided, even if you cannot afford to pay the entire tax debt.
The IRS is Not as Bad as You Think!
The IRS may react with serious consequences toward negligent taxpayers, but they also provide an ample amount of fair warning. You’ll first receive an official letter from the IRS stating that you owe ‘x’ amount of dollars. It is then your responsibility to confirm this or pay. It is highly recommended to call the IRS yourself to confirm that it is a legitimate claim. At that point, you’ll need to communicate to them that you can’t afford to pay the entire amount.
It’s OK to say this. You won’t get in trouble. It’s better than not saying anything at all. By not saying anything, the IRS will assume that you are purposely ignoring them and have no intentions of paying your tax debt.
You don’t want them to assume this. Wage garnishments, loss of property, and worse, imprisonment along with addition fines to pay can be the consequences you’ll have to face.
That’s why it’s always better to communicate with the IRS to make sure that they have a record of you trying to work out some sort of payment arrangement with them.
Just don’t ignore them!
Communicate and You’ll Be OK!
The IRS is more reasonable than you may think as long as you’re keeping the communication lines open. As long as you let them know that you’re not able to pay the full debt amount off, but are willing to comply, then an IRS representative will arrange an affordable monthly payment plan with you.
The only caveat is that you can’t default on your payment. Not even once! You can’t even be late. The moment you’re late or miss a payment, the agreement is forfeited and you’re obligated to pay the entire amount. This puts you in a compromising position because if you’re not able to keep up with a payment arrangement, then chances are you won’t be able to take care of the full amount.
Here is where you can find yourself in a lot of trouble, and here is where Success Tax Relief can step in and help you alleviate this burden.
Call us today to schedule a free first-time consultation at 877-825-1179. You can also contact us online.