We can all suffer from a downturn in our financial health at any time. Often, we are a victim of circumstances, but it can also come about as a result of poor business strategy, or bad planning.
Photo credit to Bark
Too often when people find themselves in debt, they start to take on more in an attempt to fend off the wolves that are at the door.
If you find yourself in this situation, you must sit down and consider your options logically and without emotion. I know it is difficult, but it is often the only way survive the situation with your sanity intact.
Your tax liability is one debt you cannot afford to ignore. The consequences escalate until your life becomes unbearable. It all begins when the first demand drops through your letterbox and your heart sinks into your stomach as you realise you can’t pay it. It is when people sometimes go into a blind panic, and that clouds their judgement further. It is vital to realize that nothing is going to change overnight, so make a cup of tea or coffee and sit down until your heart stops pounding, and you move towards a state of calm.
If you are unsure about what steps to take, I strongly advise you to employ representation to talk to the IRS on your behalf. The tax system is complex, and the average person cannot understand it in the way that professionals who dedicate their life to it can. Here are a few ways the experts can help you.
- They understand the technical jargon and will not be phased by it. We are often worried by official documents, but when we see them in laymen’s terms, things often don’t seem so bad.
- You might qualify for Uncollectible Status. That will give you some breathing time to gather the funds you need to get them off your back.
- They may help you avoid an IRS tax levy garnishment on your wages. The IRS has the power to apply that collection measure without having to go to court for permission. In some ways, they are a law unto themselves. What if there is a mistake in the procedure or figures, could you spot it? The experts will, negotiate on your behalf and come up with the best solution for you.
- They will probably offer an IRS wage release service if your wages are already under attack. Everything is negotiable in the world of tax; they might find an alternative way to satisfy creditor and debtor.
Unlike other debts, owing money to the IRS can have dire consequences.
If you deal with it yourself and make a mistake, it might look as if you are dodging your taxes willfully. You could even find yourself serving an extended stretch in prison. Is it worth the risk? Yes, the experts will make a charge for their services; we all have to make a living, and they have to pay taxes too. I advise you to check them out and make sure they are members of a professional body before you use their services.
Many people have been in this situation before and go on to live happy lives. It might only be a tiny blip in your life, so try and keep an objective view and realize that one day, all of these financial troubles will be behind you. You are not alone.