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Step 1
Be aware that the IRS does not care how small you are compared to the big tax payers. They can take over the most valuable possessions in your life if you do not notify them within 10 days of their contacting you.
The IRS has the right to sieze or sell any of your personal property, to garnish your wages or bank account or to put a lien on your home or any other real estate. -
Step 2
If you are having legitimate difficulties repaying your IRS debts, the best thing you can do is COMMUNICATE your problem. Make sure you respond within those 10 days even if you don't have any solution to the payment problem.
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Step 3
In 2006 the Online Payment Agreement (OPA) was made available on the internet to facilitate that communication. If you owe $25,000 or less, you can apply online to find a payment plan that might make the payoff more doable. You will have up to 60 months to fulfill your obligations. To make it more convenient you will be able to apply online and get an acceptance or rejection within minutes.
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Step 4
If it will not be possible to pay your IRS debts within those 60 months you're still not out of luck. There is another program, the Offers-in-Compromise (OPC) that will allow you to come to an agreement to pay a lesser amount that will be acceptable by both parties. This will be done in writing and you will have to prove you cannot pay your indebtedness in full.
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Step 5
In short, the IRS is willing to work with those who need to pay off IRS debt and there are now convenient options online to help. So, if you find yourself in a position where you owe money to the IRS, don't ignore it. You can lose too much. Check out these resources with the IRS. You can find IRS links listed under Resources below to find the best way to pay off your IRS debt.
Comments
luckycharms said
on 2/7/2009 Thanks for the advice.
MIghtyDreamer said
on 2/6/2009 Great pic! Very good advice and timely article. These are great tips on How to Protect Yourself When A Store Goes Bankrupt