Irs Wage Garnishment Alternatives
One problem that thousands of citizens face each year is that they owe back taxes to the IRS that they can't afford to pay
. Some of the time, the person has no assets with which to pay. While, other times, the person does have assets, but has not cash. The IRS agency treats these two situations a bit differently.
In either case, however, you do have options. If you have no assets of value and no income, as well, you can request that the IRS change the status of your case to "currently uncollectible". Of course, you will be required to provide proof of your dire financial state. If you can do this, however, it is likely that the agency will, for the moment, cease attempting to collect monies from you.
Now, if you're like many people who are behind in their tax payments, you actually do have assets. You also may have a job. But, most likely your assets may be so minimum and your earnings so low that you simply are unable to afford paying the taxes you owe without placing the wellbeing of your family at risk. In these type of cases, you may be able to get a hardship exception.
Doing this, however, will require proof from you. You will have to show that making payments to the IRS will create an economic hardship for your family. If you can do this, the IRS may classify your account as "currently uncollectible" and you will be granted hardship status. This classification does not dismiss what you owe. It simply delays it for a period of twelve to eighteen months. At the end of that time, your financials will again be evaluated and, if you are able, you will be required to make payments on your tax debt.
The final example is a situation ion which you really have some assets as well as a job that pays you just enough to keep you out of hardship status. In this case, you may be able to make arrangements with the IRS to repay your back taxes in either a lump sum or in installments.
But, regardless of whether or not you can afford to pay you back taxes, it is imperative that you respond, in some way, to the notification. If not, by default, the IRS will be able to deduct monies from your paycheck with no opposition. But, they will also have the authorization to go after any other assets that you may have. Including your bank account, checking account, funds, and so on.
Not many tax payers relish the idea of going up against the IRS. Even if you have done nothing wrong, it can be pretty intimidating. Not only that, but simply trying to decipher the various tax regulations can be almost impossible to decipher cleanly. Furthermore, a large number of citizens don't really have a full understanding of their rights under the law.
Because of this, they are easy to intimidate. And, unfortunately, they often give in to demands without really understanding their options. In cases such as this, depending on how much you owe, it may be to your benefit to seek the services of a good tax attorney who has experience in negotiating with the IRS.
by: Lane Helmer
Bamboo Fencing: A Great Alternative Alternative Cooking Methods That Are Budget-friendly Alternatives To Liposuction Acupuncture Alternative Healing Therapy Roofing Restoration Sydney Remedies: What Are Your Alternatives? Open Source Erp A Better Alternative To Conventional Erp Solutions Botox As A Face Lift Alternative Beta Carotene - Why Take Beta Carotene As An Alternative To Vitamin A Investments Explained: Alternative Investment Black Rose Gothic Emporium Quality Alternative Clothing At Great Prices Diversify Into Non-traditional Assets Through Capital Alternatives The Process Of Green Alternative Systems Gas To Cng Conversion Simplilearn.com Introduces Alternative Learning Method Through Project Management+ Event