subject: Owe Taxes And Cant Pay? Just Speak Up! [print this page] This article is for those who owe the IRS for whatever reason and cannot afford to pay. You may or may not have a monthly installment plan to IRS. Either way, due to circumstances beyond your control (decreased income, laid off, unexpected expenses); you need to make smaller payments or any payments until your circumstances changes. What you dont want to do is what most people do: become overwhelmed and do nothing by ignoring notices and pretending neither the bill nor the IRS exist. You are only courting disaster and setting yourself up for the inevitable showdown that you will lose not even knowing that a battle had taken place. If you are a wage earner or maintain a bank account, if your tax account reaches a state after months and months without payment or response, your account is sent to Collections to initiate the process of garnishing your wages and or emptying and freezing your bank accounts.
By this time, whatever fog you were in seems to have been lifted while you frantically contact the IRS to resolve the problem. You think that if you call in good faith, the money that was taken will be restored. WRONG. Your call is to prevent negative consequences in the future. For money already taken, unless you can demonstrate hardship by going through the Taxpayer Advocate Service, whats done is done. Chalk it up as a learning experience and that your tax balance is paid off or is lower than it was before. For those whose assets are still intact but are behaving badly with their account. I offer the following advice:
Call the IRS at 1-800-829-0922 if you owe taxes or are on an installment agreement. If you are on an installment agreement and you cannot pay because your financial situation has changed, swallow your pride and fess up. Let the IRS representative know your situation, that you either need to lower your payments or that you cant pay at all. They will either accommodate you if it is in their power to do so, or refer you to someone that can help you. It goes without saying that if you have received intent to levy notice, or for that matter, any letter advising a balance due, you should call the number on the notice.
Inquire as to your current account status. If your account has not been transferred to Collections, all well and good; you still have a chance to work things out. If you are on an installment agreement, you will either need to catch up the missed payments or ask to be referred to Currently Not Collectible if you are unable to make payments due to a lack of income. You will go through an interview with them to come up with a workable solution to your tax situation. However, if your account has been transferred to Collections, you must speak to them in order to restart any terminated installment agreement, or initiate a new installment agreement. You will do this, knowing that in Collections, your account is one step closer to being on the sacrificial chopping block. At this stage, its show time, not playtime. Come with your A game and a plan that works not only to remove you from the arm of Collections but best of all, to keep you there.
by: Cora Parks
welcome to Insurances.net (https://www.insurances.net)
