Tax talk is all over the media. If you owe the IRS, it's a painful reminder of your tax debt burden. Below I've compiled the answers you need for your common tax time questions.
How can I prevent the Tax Lien the IRS has threatened to issue on my credit report?
Most people don't know this, but a Tax Lien can be placed on you as early as 10 days after being notified you owed the IRS. It's a default. What you can do to prevent
your Tax Lien is:
-Pay your debt in full before the tax lien is made public
-Pay your debt in full in monthly payments
-Request a temporary removal of the tax lien.*
*This is very rarely allowed. Prove that removing the lien would help you pay the IRS (by allowing you to get a loan or a job).
I truly cannot afford to pay the IRS. My situation is dire, what can I do?
If you truly have funds to pay the IRS, you could qualify for "Currently Not Collectible"
status, which halts IRS collections until you're able to pay.
Most people think
they can't pay the IRS, when they actually can
. If you can cover your basic necessities (food, water, rent, utilities, transportation to work) with money left over, the IRS will want that extra cash.
Should I get professional help to file my taxes or solve my tax debt problems?
Yes. I can recommend this honestly and wholeheartedly, when you're in over your head, you need to work with a professional to file your taxes or resolve your tax debt problem.
Even if you decide to solve your tax case on your own, it's wise to consult a professional for advice.
Do you think I'll qualify for an Offer in Compromise (OIC)?
I've said it before and I'll say it again, very few people ever qualify to settle their debt with an Offer in Compromise.
The IRS only
allows you to settle if there's no way for you to repay your tax debt before the statute of limitations on your debt expires. Avoid this extensive process, chances are high you do not qualify.
What can I do to remove or reduce this debt?
Many people are desperate, they want a way to quickly remove their tax burden. I have to be blunt, there are no easy answers. In almost every case, you simply have to face the music and start paying on your debt.
Still have questions?
If you had IRS related questions for me, send me an e-mail
and I'll get back with you. I never mind your questions, and I'm always ready to help point you in the right direction.