subject: IRS Tax Debt and Your Credit – Answers You Need to Know [print this page] IRS Tax Debt and Your Credit Answers You Need to Know
Why should I care about an IRS debt? I'm already in debt and my credit is shot. I live in a State where collection agencies can't file suit against me so what can the IRS do?
The IRS can do plenty to you. The IRS is a federal agency and not just another rinky dink collection outfit. No matter what State you live in the IRS can levy your wages, or levy your bank account. They can even seize the assets in your house. They don't even have to take you to court. So just because you can't be touched by other collection agencies doesn't mean the IRS can't touch you.
When you're in bankruptcy creditors can't touch you or come after you. Is it the same with the IRS?
It is, sort ofit depends on how often you've filed for bankruptcy. If you are a serial filer and you've been either discharged or dismissed more than once the IRS can come after you following a set time period.
If this is your second bankruptcy then the IRS only has to hold their collection efforts for 30 days. If you've filed more than twice the IRS does not have to abide by the stay of collections and can continue to go after you.
I know my rights, and I can include my IRS tax debt in my bankruptcy and get rid of it.
You may or may not. Do not assume the IRS has to abide by the same restrictions as other creditors. While you can include an IRS tax debt in a bankruptcy there are some qualifications. First you can't claim any years filed less than 3 years ago. Second, any tax debt you're claiming had to have been filed on time for the years in question. Third, the tax debt can not have come from a false tax return.
If the IRS has already put a tax lien on my credit how can I get a loan to pay them off?
An IRS tax lien will ruin your credit and there's no way to get rid of it until you pay off the debt in full. Now you can get the lien removed if you can prove to the IRS that you can get a loan to pay off the full balance. Of course you will need documents proving that you can get the loan for sure before the IRS lifts the lien.
