Alternatives If You Can’t Pay Your Taxes
If you owe the Internal Revenue Service taxes, there may be some comfort in knowing that you are not alone. Literally thousands of Americans owe the IRS money. Do not let anxiety slow you from taking action. When the IRS comes calling for back taxes, you must act quickly to protect yourself. Fines, and fees, and interest add up fast and can soon be running higher than you originally owed. Don’t just sit back and wait for the IRS to act.
The Internal revenue Service realizes that you cannot get blood from a stone. For this reason, there is a “hardship status” alternative. If you qualify for this status, the Internal Revenue Service cannot pursue you for back taxes. However, it is extremely difficult to quality under this status. You will have to prove that if you were to pay the IRS any money at all it would put you in unreasonable financial hardship. In short, you have to prove that paying anything on your back taxes would literally take food out of your mouth.
Hardship status is also called “Currently Not Collectible” status. This is because hardship status is not a permanent solution to tax collection. Once you are placed on hardship status, the IRS will periodically review your financial situation, until such a time as your account is no longer “Currently Not Collectible.”
Some citizens experience hardship beyond the financial. These taxpayers, due to serious illness or injury, cannot be reasonably expected to pay their back taxes. These accounts are usually considered “Suspended Collections.” These taxpayers, generally people who have been placed on disability with no resources to pay their back taxes, have their collections suspended until the statute of limitations on those collections expires.
To qualify under any of these conditions is going to take enormous effort and tough negotiation. The IRS does not hand out these options liberally. You will have to fight tooth and nail to absolutely prove that you qualify for these accommodations. But if you do, these options can provide much needed relief from the knock of the taxman.
You may find yourself in need of assistance to help to determine if you might qualify under these conditions. Seek the assistance of a professional to determine if you really have a chance for this sort of status. If you cannot afford such a consultation, you may be forced to deal directly with the Internal Revenue Service itself in the hope you qualify for relief.
Are you unable to pay your taxes? It’s ok. There are some ways to get relief. Deal with IRS and get a deal. How? Chintamani Abhyankar explains.