What To Do When You Just Can’t Pay Your Taxes
Well, we’ve made it through another tax season.
Congratulations to all you taxpayers who filed on time and paid what was required. For those who were entitled to a refund and received it, hooray for you! Now that task is behind you and you can move on to other pressing life matters until later in the year when you’ll want to refresh your memory about all the changes you’ll be subject to when the new tax laws kick in next filing season.
In the meantime, I know there are some of you out there who have not filed or paid your taxes in a few years.
Or maybe this is the first year you didn’t file or pay what you owe. Maybe you also know you simply cannot pay. What can you do?
Some people may have advised you to call the IRS and explain your financial circumstances. They may even suggest that the IRS will quality you for “Non-Collectible” status. If that’s the case, please hold off and don’t do a thing until you finish reading what I have to say.
As simple as that “non-collectible” status sounds, unless you know how the IRS works and how to deal correctly with them, you could end up in a real pickle. For instance, if you call them on your own and answer all their questions, the IRS agents are trained to use any information you give them to maximize their chances of collecting money from you. You wouldn’t even know if you were saying the ‘wrong’ thing.
If you were to be deemed to be “Non-Collectible,” The IRS must immediately stop all levies and garnishments.
What a relief that would be, right? But, once again, I cannot emphasize it enough, most taxpayers simply have no idea how to work with the IRS. Most people are inherently afraid of the IRS too. Dealing with the IRS in fear is not the way to achieve your objective.
So, before you call the IRS and try to go for “Non-Collectible” status on your own, call us. We’ll let you know if this is your best option and we’ll make sure the IRS has the right information they need to make that determination – and only that information.