The Few: Government jobs are hard to get. There’s a waiting list a mile long. But when you finally land that job, you have to be careful. Did you know being in debt to the IRS can actually make you lose your job? Then you’ll be broke and still be in debt. If you work for the government, watch out. This scenario could easily happen to you.
What They’ll Do:
Bank Levy: This is a common way the IRS collects their money. Ignore the IRS’s “Final Notice and Intent to Levy,” and the IRS might seize the money you owe right out of your bank account. In one fatal swoop, all the money you’ve saved up for years could be gone.
Wage Garnishment: This is a bigger danger to you and your job. The IRS has to notify your place of employment when they decide to garnish your wages. If you fall into the category of people that cannot be in debt to a government entity, this could cause you to lose your job. Although usually, you’ll get a limited amount of time to resolve the debt, first.
Don’t Delay! You can’t lose your job. So you need to know how to remove an IRS debt, and quickly! But nothing with the IRS can go fast. Especially when you’re not a professional. Remember, you’re dealing with people who are skilled and trained in IRS procedure. But here are some methods for beating your debt.
Installment Agreement: Try paying monthly. Everyone has the right to apply for this program. The IRS will need to know your full and complete financial information. They will compare that to the amount of money you spent on your basic needs. Then they will determine how much you will pay them each month. This may sound a bit like how you pay your credit card debts, but it’s not the same. With your credit card debts, you choose how much you pay each month. But with the IRS, They choose how much you pay each month. And if you default, you will be disqualified from the plan! So you cannot miss even one payment.
Offer in Compromise: Good luck winning this! You do have the option to settle your debt. But don’t even bother to try to submit and Offer if your financial situation isn’t dire. The IRS will again, check your entire financial situation. If they find you have no assets and absolutely no way to pay your debt in full, they will consider an Offer. The IRS approves only around 2% of the people that apply. So make sure you don’t make any small mistakes while filling out the 44 page document.
Getting Lucky: If you take care of your IRS debt before they find you, you’ll be one of the lucky ones. For many people out there, it’s already too late. Work on your debt now, before the IRS makes you lose your job and your money.