Make it Stop! You never asked for an IRS tax debt; in fact, you want to do everything you can to get rid of it. You’ve gotten letters, phone calls, and they’ve even sent an IRS-Hitman to your house! There’s no way you can afford to pay the debt, but they’re just not going to take “no” for an answer. With all the other debt you’re trying to manage, the IRS is just going to have to wait.
But They Won’t Wait...The difference between owing the IRS, and owing any other creditor, is that the IRS is a part of the Federal Government. They do not have sympathy for your situation and will stop at nothing to get your money. Other creditors may call you or send you letters, but their collection pretty much stops there. The IRS can do a whole lot more:
The Tax Lien: After the letters and phone calls, the first thing the IRS usually does is put a lien on your credit report. And you thought you were having issues with your credit before! You’ve just gotten a terrible black spot on your report. Now you can’t do anything that deals with credit without getting tons of red flags. This makes it almost impossible to take out a loan, finance a car, or re-finance a home.
Do the Right Thing: It sounds a little crazy, but your other debts are the least of your worries. You might think because you haven’t heard from the IRS that you’re not in serious trouble. But that’s exactly what a good IRS-Hitman wants you to think. If you think everything is okay, he can strike swiftly and effectively, leaving you at the mercies of the Federal Government.
Bite the Bullet: Make the IRS debt you’re first and foremost priority. You may get yelled and screamed at by collection agencies. Your money may be threatened by consolidation companies. But the IRS will financially cripple you and leave you with absolutely nothing.
Now you have the Smoking Gun...Use it!