Help! I Can’t Pay My IRS Tax Debt

Will the IRS help me? I can tell you from experience that many of you who owe money to Uncle Sam's collection agency have no way to pay off the debt in full.

What can you do to pay the IRS? Well collection agencies accept payment installment plans, and the IRS is the biggest collection agency in the world, right? The IRS does allow you to setup a payment plan for your debt, but there's a few things I need to tell you first.

What's a Streamline Payment Agreement? This payment plan can provide assistance and will not require that you disclose any of your finances to the IRS. But, you cannot owe more than $25,000 to enter into this payment plan. Also, your payments will be based on how much is needed monthly to pay your debt (plus penalties and interest) off in five years. This may be incredibly affordable or beyond your means.  If it does turn out to be unaffordable, this is not your only option.

Full Financial Disclosure: Installment agreements base your payments on how much you can afford to pay on a monthly basis. This requires that you fully disclose your finances, which means your entire life is an open book for them. Not just how much money you have, but how you live. Based on that they determine what your "allowable" expenses are for the month, and the rest goes to them.

What are your allowable expenses? They're not what you think. For example, the IRS doesn't consider credit card payments as "allowable" they're luxuries and the IRS won't take them into account, no matter how much you owe.

If you believe that some of the money you spend is allowable then you have to prove to the IRS that it is necessary. People have the misconception when dealing with us that the burden of proof wasn't on them. As far as we were concerned, everyone was guilty until proven innocent.

The IRS wants you to default on your payment plan. The IRS doesn't want you to be able to keep up your payment plan. I know, because we used to wait in the wings for someone to miss a payment. Why? Because once you default we swoop in like vultures and start the hardcore collection actions. And since you had to tell the IRS all of your financial information, we would know about everything that could be seized, and where you kept it.

Why hiring a tax debt professional is the right choice. A payment plan is the only solution for thousands of people in tax debt. It seems almost impossible to come out on top of the payments, but the alternatives such as wage garnishment are much worse. However, there are payment plans out there that truly work for taxpayers. Talking to a tax debt professional will help you figure out the best plan of action and put you in the best possible situation.

Now you have the smoking gun... Use it!

I'm Richard Close and I was a "Hitman" for the IRS. I was a second generation revenue officer. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact my IRS Hitman Team at Tax Defense Network, and find real solutions for your real tax problems: email me at or call 1-888-391-2037. You can also follow me on twitter @irs_hitman.