| u find yourself in a situation where you owe back | | | | your debt. So depending on how much you're |
| taxes to the IRS, don't panic. It may seem like | | | | paying each month, you may find that your |
| the end of world, but it's really only a bump in the | | | | overall debt never shrinks. And if you ever start |
| road. But you have to handle it swiftly, as soon as | | | | making more money, the IRS will know about it |
| receive a notice from the IRS. Resist the | | | | and will increase the amount you owe on your |
| temptation to ignore it, as that will only make the | | | | payment plan each month. |
| problem worse. Here are five things you need to | | | | 5. The IRS is Waiting for You to Fail. That's right. |
| know if you find yourself owing money to the | | | | They're just waiting for you to miss a monthly |
| IRS. | | | | payment so that they can start the real collection |
| 1. You Don't Have to Pay the Full Sum…at | | | | procedure. This includes seizing property, and they |
| least not yet. The IRS will assume that because | | | | already know about all of your assets because |
| you haven't already paid your taxes, you are | | | | you’ve disclosed them. |
| unable to do so, so they will allow you to pay | | | | Despite the terrifying details listed above, there is |
| your back taxes in installments. But it's not as | | | | a way to survive owing back taxes to the IRS. |
| easy as all that. | | | | Hire a tax attorney. Hire one before you ever get |
| 2. Full Financial Disclosure. Creating a payment plan | | | | into trouble and you'll be more likely to avoid the |
| with the IRS isn't like working out debt with a | | | | IRS in the future. Hire one when you find out |
| doctor or even a collection agent. You don't get | | | | you're in a quandary and they will advocate on |
| to negotiate how much to pay the | | | | your behalf throughout the whole process. They |
| IRS…they get to tell you how much you | | | | can help you set up a payment plan that is more |
| will pay. And in order to determine how much you | | | | manageable that one you would receive if you |
| will be required to pay, the IRS will have to go | | | | worked with the IRS on your own behalf. They |
| over your financial records with a fine-tooth | | | | can help you make cohesive and convincing |
| comb. But they won’t stop at your | | | | arguments about allowable expenses. Most |
| financial records; they'll look at all of your assets. | | | | importantly, they can field all phone calls and |
| They will determine what your allowable expenses | | | | correspondence from IRS agents. IRS agents are |
| are each month based on your lifestyle and they | | | | ruthless, and they won't let up until they are |
| will require that every penny above and beyond | | | | satisfied that they've gotten what they're looking |
| those allowable expenses goes to them. | | | | for. That constant barrage of phone calls and mail |
| 3. Proving Yourself. If you disagree with the IRS's | | | | can be stressful, so having someone handle on |
| assessment of what is allowable, then you'll have | | | | your behalf can reduce a great deal of the stress |
| to prove it to them. The burden of proof is | | | | you feel as the result of back taxes. |
| always on you, the taxpayer. The IRS isn't going | | | | So hire a tax attorney today. Avoid future tax |
| to give you the benefit of the doubt…ever. | | | | problems and clear up the ones you have now by |
| 4. The Real Cost of Debt. Even after | | | | letting a qualified attorney advocate on your |
| you’ve worked out your payment plan | | | | behalf. You'll be pleased with the results once you |
| with the IRS, they will continue to assess interest | | | | move past this little bump in the road. |
| and penalties, which typically amounts to 25% of | | | | |