Dealing with IRS Collections, Do’s and Don’ts

 

Is the IRS is trying to collect a debt from you?  Grown men – and women – have been reduced to tears because they feared IRS collection agents.

 

It doesn’t have to be this way. In fact, the worst thing you can do is ignore IRS collection agents. When you ignore them and don’t try to work out a mutually satisfactory arrangement for the repayment of your tax debts, they have no choice but to resort to enforced collection. An IRS agent has almost unfettered power to seize your assets, garnish your wages and, if he or she believes that you are intentionally evading taxes, to refer you to the Criminal Investigation Division. Jail Time!

 

Avoiding the inevitable is not the way to go. My experience is that if your qualified representative (enrolled agent, EA) deals with the agent in a direct and prompt, manner you can almost always work out some sort of payment arrangement that will allow you to maintain a reasonably comfortable lifestyle.

Here are five do’s and five don’ts for dealing with IRS collection agents:

The Do’s:

• Do consult a tax professional, preferably an EA, to find out what your rights are. Do file all your tax returns whether or not you have the money to pay the tax liability shown on those returns. Not filing your tax return is a crime.
• Do meet the call back deadlines included in IRS correspondence.
• Do treat IRS personnel with respect.

The Don’ts:

• Don't lie to the IRS.
• Don’t hire any organization that tells you the income tax is illegal or that there are legal ways for you to be exempt from taxes. These are scams.
• Don’t procrastinate
• Don’t blame others for your predicament. This is just another form of procrastination.

As with most things we fear, the reality is never as bad as the fantasy. The IRS is powerful but is also reasonable. The horror stories you hear are usually from people who ignored the IRS and didn’t follow my list of do’s and don’ts.

 

 

 

Call HGi Financial Services for assistance with all your tax returns, collections and audits. Share this with your family and friends. They may have tax concerns or know someone who does.

 

Go to http://www.hgifinancial.com/ for additional information.