IRS Tax Debt: How it Caught You and How to Escape It: Part One of Two

Troubled Waters: If you’re reading this, it probably isn’t the first time you’ve thought about your IRS tax problems. It’s probably not the first time the IRS has thought about them either. If you’re facing thousands of dollars in back tax debt, it is not a time to panic. It is time to take a deep breath, asses the situation, and learn what exactly you can do. But in order to understand how to face the debt, you must understand how it happened.

To Do List: When it comes to priorities, filing your IRS taxes isn’t always on everyone’s mind. As a matter of fact, with all the things you’ve got going on, it’s probably one of the last things you even think about. With bills, appointments, activities, grocery shopping, car troubles, school supplies, gas prices, etc. You’ve got more than enough on your mind. But the IRS doesn’t care about those things; all they want you to do is file your taxes.

Why so Serious? Filing with the IRS is a major deal to them. Take it from me, a former IRS-Hitman; nothing makes them angrier than taxpayers who don’t file. The penalties for not filing are outrageous: from paying a large amount in penalties and interest, to serving time in jail! Now you might be thinking that even if you don't pay, as long as you file, you’ll be okay. But even though filing is the most important thing, the IRS will come down on you with an Iron Fist if you continue to avoid the debt.

Carry a Big Stick: The IRS has tons of ways of collecting on the back taxes that you owe. The worst part is, all of them are completely legal. They can put a lien on your credit, which basically means you can’t do anything you would normally use credit to do; apply for a loan, buy a car, etc. They can implement a bank levy, which takes all current funds from your bank account and freezes you out until the debt is paid or arrangements are made. They can also garnish your wages, which means going straight to the source of your income…your paycheck!

Who you gonna Call? The worst part about all this mess is that you have no idea what you’re dealing with. The IRS is a complicated system and they like it that way. The less that taxpayers know, the more an IRS-Hitman can take advantage of them. So it’s best to contact a reliable tax professional. Whether you owe $10,000 dollars or $1,000,000 dollars, there is help available to you. In the next segment, I’ll tell you who to look out for, and who to trust when it comes to tax resolution.

Now you have the Smoking Gun…Use It!