| Penalties, Liens, and Levies...oh my! Of all the IRS | | | | occurred that were beyond your control and now you |
| problems you might encounter, the collections problems | | | | can't pay. Prove you made an effort. |
| are the worst by far. Preventing IRS Tax Debt is a lot | | | | 2) You must prove that paying on time will cause an |
| easier than curing it. Being armed with insider | | | | economic hardship for you. You have to show the IRS |
| knowledge can help you pay your debt on your own | | | | that basic living expenses could not be paid for if you |
| terms, not on the IRS' terms. | | | | pay your taxes on time. |
| Beat 'em at their Own Game: One of the IRS' best | | | | 3) You must agree to give the IRS security for the |
| kept secrets is the fact that the law provides for an | | | | unpaid tax. This means the IRS will place a Lien on you. |
| extension of time to pay taxes. The IRS may deny | | | | It may sound like a bad idea- but if you were to just |
| this, but the agency even has a form for it (Form 1127 | | | | pay your bill late instead of requesting an extension- |
| "Application for Extension of Time for Payment of | | | | the IRS would likely place a Lien on you anyway. If you |
| Tax"). It's hard to win the extension, since most people | | | | have no assets, this will not apply to you. |
| do not know what evidence they need to provide to | | | | Request Granted, More Money Saved!: If you're lucky |
| be entitled to it, but it can be won. | | | | and an extension is granted you may receive up to 6 |
| How To Win the Fight: | | | | months to pay your taxes- without penalties. Interest |
| 1) You must prove to the IRS that although you did | | | | still accrues during the extension period, but by avoiding |
| save money to pay for your taxes, and circumstances | | | | the penalties you can cut the debt in half. |