What to Do When the IRS Is After You
When you are up to your neck in tax trouble and you receive notification that the IRS is taking action, you’d better believe that they will do exactly what they say they will. The IRS has an uncanny ability to get to you. What you think is rightfully yours suddenly belongs to the IRS. If you have not already looked for help with the IRS, do it now. There are several things that you can do to buy more time. It is advisable to stop trying to do it by yourself when things get to this point. Find a tax attorney. They are lawyers that have specialized in tax code and law.
If the IRS has notified you that they will seize your assets in the following days or weeks, take immediate emergency action. Your best tool is negotiation. Ask for extra time. Work out a payment schedule. Make a partial payment. These may appease the IRS for a bit longer. If that doesn’t work you may consider moving your bank accounts and assets. You can also file paperwork that appeals the decision of the IRS. Getting an attorney to do these things for you may also add more power to your requests and getting help with the IRS.
If you are not in too much trouble yet, that is great; you have time to resolve problems before it becomes critical. If you owe back taxes or did not file your taxes you can anticipate problems in the future. You can compromise and negotiate with the IRS much better in this position than in an emergency situation. File appeals to stop interest and penalties. File tax returns that you did not complete in the past. You might even ask for audit reconsideration. When all else fails, you have the time to file bankruptcy. Getting help with the IRS is a must before things get worse.
The ideal situation is to avoid problems in the first place. If you anticipate owing more taxes than you can pay, get help right away. Hire a CPA or tax attorney to help you reduce the amount of taxes you might owe. A little help with the IRS goes a long way. File the proper paperwork to file an extension if you need more time to figure out your finances. Or go ahead and file the return anyway and fix it later. Doing this is better than not filing and being slapped with a huge fine for failure-to-pay.