Tax Collections Survival Tips
The IRS has far
greater powers than any other bill collector, but you still have rights.
The IRS has far greater powers than any other bill collector. The agency
has the power to take your wages, bank accounts and other property
without first granting you a hearing. Nevertheless, you aren't entirely
at the agency's mercy. Here are some tips that may help you if an IRS
collector is at your heels.
The IRS collection process starts with computerized form letters, which should not be ignored. If you can't pay, request more time.
Avoid giving bank account and employment information to the IRS over the phone. If you don't want to deal with the telephone collector, request that your file be sent to the local district office to meet with a tax collector to work out a payment arrangement.
Treat a collector with respect but remember you have rights. Read IRS Publication 1.
Never lie to an IRS employee about your assets or anything else. It is a crime.
Carefully prepare your financial information before speaking with the tax collector. Make sure you don't understate your living expenses.
If you can't pay your taxes all at once, you can propose an installment agreement. If you get an agreement approved, keep to it.
It is possible, but never easy, to reduce your tax debts through something called an offer in compromise.
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Bankruptcy may work to cancel tax debts or let you pay over time without interest and penalties accruing.
If you are in dire financial straits, ask the IRS to suspend collection for hardship.
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Disclaimer TO ENSURE COMPLIANCE WITH REQUIREMENTS IMPOSED BY THE IRS, WE INFORM YOU THAT ANY TAX ADVICE CONTAINED IN THIS COMMUNICATION (INCLUDING ANY ATTACHMENTS) WAS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF (1) AVOIDING TAX RELATED PENALTIES UNDER THE INTERNAL REVENUE CODE OR (2) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.
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