IRS Tax Debt: Learn the IRS's System and Rid Yourself of IRS Debt

Deep in Debt? You're not alone. Most everyone experiences a problem with the IRS. Even if you pay on time, the IRS can still come knocking. How can that be? Why do innocent Taxpayers have the IRS on their back? Because the IRS's system is flawed.

The Flawed System:

Unreliable Technology: Computer glitches. The system the IRS uses to aid them in the collections process is called the “Automated Collections System” (ACS). It's this computer system that automatically sends notices out. People still have to enter your data into these computer systems. This is where mistakes can start.

Rules, Rules, Rules: IRS rules are constantly changing. Every year new Tax Laws are approved. In fact, America has the most complicated Tax Laws in the world. No citizen can be expected to understand them all. Not even the IRS understands them all.

Civil Servants: IRS workers don't work with passion. They work by the book. They follow the codes of what they are required to do, and that's it. So what happens when you have a detailed question about your specific case? They filter you from one department to another. Days can pass and your questions will still be unanswered.

Winning the Game:

You Have Access to Your IRS Files
Play detective. You can “Spy” on the IRS and see what their computers say about you. Your IRS computer account will show the dates you filed your tax returns, any penalties and interest payments you've made, and any issues you've had with the IRS. To get a copy of your account, call the IRS and ask for your Master File Transcript (MFTRA). If you can't, call an Attorney or a Tax Professional to help you.

You Have Access to the IRS Laws
The IRS's official website has all the IRS laws available for you to download. But keep in mind, the Tax Code expands multiple thousands of pages. Don't attempt to understand the whole code, it won't be light reading.

Open to Interpretation
Some Tax Rules are unclear. You may have the opportunity to win a case against the IRS. For instance, it's illegal for the IRS to seize tools for work. If your 2nd car is a tool you use for work (Ex: You're a delivery man) you can prove that to the IRS and keep your car when the IRS is trying to seize your property. But beware, the IRS can try to use the rules in their favor as well!