IRS Tax Debt - Put the Collections Machine on Hold and Get More Time to Pay

Procrastination: Don't procrastinate with the IRS. You may have received some notices in the mail. They're certified, and they're important. So don't put it off, open the letter and get to work finding a solution before you face dire consequences.

Automated Collections 101: If you ignore the notices the IRS mails you, your account is sent to the Automated Collections System (ACS). This is the area of the IRS that can Seize your assets, Levy your Bank accounts, and Garnish your wages.

Buying Time: If you ignored your IRS debt, it's probably already too late. But there are certain ways you can buy time.

Short-Term Hold: This usually doesn't work, but it's worth a shot. You can call the IRS and request a short-time hold. This could be anywhere from one week to 60 days...and you better be working hard to get into a tax resolution during this time. After you call the IRS, send them a written request for more time along with the photocopy of the notice you were sent.

Long-Term Hold:
It's even harder to get a hold on your account that is longer than 60 days. You have to call the IRS and ask them to classify your account as a "Hardship Case." If your situation is truly dire, a reprieve from debt collections for a year. But your have to provide plenty of evidence to support this. You need documents proving you cannot pay your debt. And IRS Hitmen are not known for their sympathy.

Getting Help: Did the IRS refuse to give you a long-term or a even a short-term hold? Then you have to face the music and find a way to pay your debt now. At this stage, it's going to be really tough. You already tried one or two excuses that didn't work and the IRS doesn't like stalling tactics. You may need professional help at this point.

Window of Opportunity:
The key here is acting on your debt as soon as you know it exists. Can't pay? Let the IRS know and work with them to find a solution. You can even consult with a third party for help, but don't pretend it doesn't exist!

Now You Have The Smoking Gun...Use it!