Jaws: A full-grown Great White Shark can bite down with a pressure of up to 6,000 pounds. Rumor has it, that IRS Revenue Officers bite even harder; and evidence has shown us just that. With the economy failing, and more taxpayers slipping into debt, the IRS Sharks are circling like never before. And they’re waiting for you to make the one false move that will land you right in their jaws.
Stay Out of the Water: Chances are, you’ve known about this for awhile. If the IRS is ready to bite, they’ve probably already sent a few warning signs. These usually come in the form of three certified letters. The first letter will kindly outline what you owe and give you a due date. The second letter will be a little harsher and will tell you they will take action if you do not pay. By the time you get the third letter, they’ve probably already attacked.
The Mouth of the Monster: Much like a shark, it’s pretty hard to get and IRS Revenue Officer to let go once he’s taken his first bite. But an IRS-Hitman won’t take your arm or leg; he’ll do a lot worse. If you’ve gotten your third letter you’re going to face a lien, a bank levy, or in worst case scenarios a wage garnishment. If you’ve ever visited my blog you know a little about what these are. But for those of you have not:
Tax Lien: This is basically a black spot that can royally mess up your credit. It not only prevents you from using your credit while it’s on, but even after it is removed, it can take years to rebuild your good credit
Bank Levy: When this happens, the IRS talks to your bank and you are frozen completely out of your account. You can’t withdrawal any money, you can’t use your debit card, and worst of all, there’s nothing you or your bank can do about it.
Wage Garnishment: Rather than attacking your credit or your bank, the IRS goes straight to the source: your paycheck. They will contact your employer and demand a percentage of your check to apply to your IRS debt. These days they can take up to 80% of each paycheck.
Feeding Frenzy! If any of these things happen to you, the IRS is probably enjoying every minute of it. Their job is to get their money and they’ll do it by whatever means necessary. If this means putting you out on the street or keeping you from feeding your children, it doesn’t really matter. This is why you have to stay on top of your filing and make sure if you ever owe, pay it off as soon as you can.
Now you have the Smoking Gun…Use It!