Getting into debt with the IRS can feel as if you're experiencing a nightmare in real life. However, communication and cooperation with the IRS helps alleviate the stress and worry those who are struggling with a debt may feel. The IRS is willing to work with individuals who have found themselves in debt simply by making a plan and working together. Just be prepared for a lot of hoops and stacks of paperwork. The IRS is nothing if not thorough in their investigations and processes. Whenever you have an IRS debt, there are many ways to help yourself to not feel overwhelmed and defeated with the situation. There are many agencies out there who can ease the process and act as a middle man between you and the IRS red tape.
Although it is possible to ignore phone calls and letters from the IRS, it is not recommended. The sooner you respond to the IRS, the easier it is to gather the details necessary to move forward in your life. Answering contact from the IRS is a way to clear up confusion or set meetings to determine a plan that is right for you.
In some cases, (such as ignoring calls or notices), you may have no choice but to meet in person with the IRS representative taking on your case. It's beneficial to meet with your IRS agent in person to explain your situation and to discuss possible payment plans and how to go about ensuring you are still able to maintain your livelihood.
If you are unable to pay a tax debt in its entirety, an installment plan may be the right solution for you. Installment plans in conjunction with working together with your IRS agent considers your gross and net income along with household expenses and needs to keep you from finding yourself in debt while also paying off the IRS.
You can absolutely reach a compromise with the IRS, especially if you have cooperated throughout the entire time of working with them. Many IRS agents simply want cooperation, and may reduce your payment amount or allow you to qualify for extensions if you are not able to pay at the time of your summons or a meeting with your IRS agent personally.
If you are unable to pay your tax debt altogether, working one on one with your IRS agent is highly advisable. Having paperwork add the ability to back your statements up showcases your limited funds. Your debt may be put off for a future date and in some cases, eradicated altogether depending on the amount of money you owe.
If the IRS is garnishing wages of any sort, you are legally capable of requesting an appeal and a meeting with the agent who represents your case. Showing documents of your take home income is also important for a judge to stop the garnishment and instead, offering you the chance to pay with an installment plan that works for you.
All judgments depend on your current living conditions, whether you care for children, and if you are currently employed at the moment. Your IRS agent and lawyer themselves will work together to formulate the proper plan, ensuring a judge you see truly understands the need for you to maintain what you earn to eliminate garnishments altogether.
Filing bankruptcy is not recommended for everyone who is struggling with a tax lien or have fallen behind on paying taxes. If you qualify for bankruptcy it is important to seek the counsel of an attorney who specializes in bankruptcy and tax law, in addition to the IRS agent you are working with, in order to determine the best path for you.