If you have not managed your income in a way that allows for taxes, or if your company has recently suffered from significant losses, you may be in a position where you cannot pay the Internal Revenue Service (IRS) the taxes that you owe. This can be a worrying situation for many because you’ll feel powerless to meet the demands of the law.
If you are worried that unpaid debts may become a reality for you, it’s important that you take the appropriate action to understand what you can do to resolve the situation in the most effective way. The following is an overview of the things you should do if you owe the IRS tax payments.
Don’t ignore the communication you get from the IRS
If you get a notice in your email from the IRS, this does not mean that it is less serious than communication through the mail. It’s vital that you take all communication from the IRS seriously and that you respond to the IRS every time you receive communication.
Make sure that you have your rights explained
The IRS acknowledges that individuals have the right to certain treatment in their 2015 publication entitled “The IRS Collection Process.” You have the right to be treated in a professional and courteous manner, and you have the right to be represented. You also have the right to stop the interview at any time and ask to speak to a supervisor.
Hold your ground
There is a due process that must be followed by the IRS. They cannot simply gain access to your bank account and material assets without giving you the chance to challenge the claims made by them. You may be able to gain relief by making a number of claims. For example, if the actions of your former spouse led you to the situation that you are now in, you may be able to gain innocent spouse relief.
While being in debt to the IRS can lead to serious consequences, you will not go to jail because you were unable to pay. It’s important that you take action as soon as you can so that you are able to engage in the process and resolve the situation. Doing so will likely be a huge relief for you.