Job Fairs, Interviews, and Internet Searches and yielding nothing? You have no job. You used to pay all your bills on time, but now you can't. What can you do when you owe the IRS but you don't have the money to pay it with? There's a surprising amount of options available for those who are unemployed.
Choose the Right Help!
See if you qualify for the options below.
Offer in Compromise
- You can Settle your Debt with the IRS. It's a very long and tedious process and the qualifications are difficult to meet. Consulting with a professional is the best way to win an Offer, but it's not necessary. Be prepared to fill out 44 pages of paperwork. In addition to that, you must include 20% of the offer when you send it in.
- Can you pay monthly? If you want to get into an affordable payment plan, you my have to provide your complete financial information to the IRS. After they review it and realize you have no or little income coming in and no assets to seize, they choose the amount you can pay each month.
You have a chance of qualifying for a hardship plan if you are unemployed. Basically, you have to prove to the IRS that you cannot afford to pay the IRS because if you do, you will not have money left over for your basic needs. If the IRS determines that you're right, they will give you a brief reprieve from the collections process. But don't get comfortable yet. After the resting period is up, the IRS will continue the collections process.
The IRS won't stop their process just because you're on hold. When you can't pay, the IRS immediately starts adding interest and penalties . This means that not only do you owe the original debt, but also the newer fees. But there is a solution. Try applying for "Penalty Abatement." You could potentially reduce your tax debt up to 30%!
Don't give up
. There's lots of ways to take care of your IRS debt, even if you don't have a job. There worst choice you can make is just to ignore it. Even if you are unemployed, your IRS debt will not simply vanish.
Now You Have The Smoking Gun...Use it!