Consumer debt help tips for dealing with the IRS. This is one creditor that you do not want to mess around with!
We’ve all heard the famous quote, “Two things in life are certain, death and taxes”. With many people already in need of help with their consumer debt, it might seem unfair that the Internal Revenue Service (IRS) can come along and make things even more difficult.
"The man who never has money enough to pay his debts
has too much of something else."
- James H. Aughey |
However, that’s how it works in America - you can’t escape the tax man! - so it’s important to know how to deal with the IRS if you owe them money.
First and foremost, you must always file your tax returns in a timely manner. Even if you owe money and can’t pay it right now, you should still file your return on time, or else request an extension.
Don’t just skip filing and hope the IRS won’t notice that you owe them money. Sooner or later, they will discover it, and the longer it’s been since you were supposed to pay it, the higher your penalties will be. So file your return on time, every time, no matter what.
Above all, never ignore any letter you receive from the IRS. Some problems go away if you don’t pay attention to them, but not the IRS. If you let it go far enough, they can garnish your wages and seize your property.
Bottom line, take your interactions with Uncle Sam very seriously.
Check out our Free Tools section of the website for a free library of financial tools and resources. Additional consumer debt help can be found at the IRS’s website, www.irs.gov. For example, there’s a calculator there that can help you figure out how much to have the government withhold from your paycheck so that you don’t end up owing money at the end of the year.
Better to have them take out your taxes little by little than to owe them a chunk all at once, right?
On the other hand, if you’ve been getting large refund checks, reduce the amount you are paying to the IRS. Why let them earn interest on YOUR money? Some people treat a tax refund like a present from the government. But it’s really just another indication you are not managing your money properly.
Do you owe the IRS money? Educate yourself on your rights and responsibilities. Ask the IRS for a copy of form 594, called “Understanding the Collection Process.”
The IRS is a very powerful entity, but they do offer consumer debt help, and they do have to follow their own rules. So it’s important that you know what those rules are so you don't become part of America's sad consumer debt statistics.
If you owe money, there is consumer debt help available. You can set up a payment plan with the IRS (both federal and state) with form #9465, “Installment Agreement Request.” The IRS is tough and they don’t accept much in the way of excuses. So long as you owe them money, they will be charging you fees and interest.
These penalties add up quickly so it’s always best to get the IRS out of your life as soon as possible, even if that means taking out a consumer debt consolidation loan. It's always better to owe money to a bank than to the government.
"Some debts are fun when you are acquiring them,
but none are fun when you set about retiring them."
- Ogden Nash, American Writer |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
