| No refund this year... After you've filed your income | | | | debt in full, do it! Owing your bank or a creditor gives |
| taxes you find out that you owe money to the IRS. | | | | you a better interest rate than the IRS does. Between |
| Maybe the debt was from taxes on your business, or | | | | interest and penalties the IRS is increasing your debt |
| the debt is because you just claimed something or | | | | by about 25% per year. |
| someone you shouldn't have. No matter how you've | | | | 5. If you can't get a loan you can try to negotiate with |
| gotten the debt, it's there and you need to do | | | | the IRS. For a complete list of the options for settling |
| something about it. | | | | an IRS debt read my article, "Tax Problem Help: How |
| Here comes the cavalry... The Hitman wants to give | | | | to Give Yourself a Fighting Chance". If you feel too |
| you some help in this tough time and give you some | | | | overwhelmed by the IRS bureaucracy then you can |
| steps to help you with this debt. | | | | consider using a tax professional service to help you |
| 1. Make sure you actually owe the debt. Go back over | | | | with the right plan. |
| you information and make sure you did the math right. | | | | 6. Don't wait for the IRS to contact you! Because of |
| If the IRS has audited you, you can always use the | | | | the size of the IRS everything moves slowly, at first. |
| services of the Tax Payer Advocate Service to | | | | When I was a Hitman some people wouldn't get |
| verify your debt is accurate. You will need to get all | | | | notification of their debt for up to a year. And once |
| paperwork together to prove any tax deductions or | | | | you get that first notification we would have you |
| tax credits that you claimed. | | | | targeted and then we sped things up. Not to mention |
| 2. If your debt is accurate, don't panic and don't put off | | | | interest and penalties would add on starting from day |
| dealing with it. The IRS debt is not going to go away. | | | | one of your tax debt. |
| Interest and penalties start adding on to the debt | | | | One more thing... The best advice this reformed Hitman |
| immediately and if you don't do anything the IRS will | | | | can give you is to act immediately! Don't put your head |
| start taking more aggressive collection actions. | | | | in the sand, and don't hope things will work themselves |
| 3. You can buy yourself some time. Send a written | | | | out. The IRS is not just a collection agency; they're not |
| request to the IRS stating that you can't pay the tax | | | | bound by State laws. They can take whatever they |
| debt right now. You'll be given a 45 day grace period | | | | want from you, and they can destroy your life if you |
| before they start sending intent to levy letters and | | | | let them. |
| threatening collection actions. | | | | Now you have the smoking gun...Use it! |
| 4. Do something! If can borrow money to pay off the | | | | |