I just prepared my tax return and owe the IRS. I don’t have the money to pay and I can’t sleep from worrying about what could happen next. Can the IRS take my paycheck? Can the IRS put a lien on my house? Can the IRS take money from my bank account? Can the IRS close my business? These are the typical questions people ask when faced with unpaid taxes. Can the IRS really do this to me? The answer is ….
YES! The IRS is the most powerful agency in our government and can garnish wages, bank accounts, close your business and put a lien on your home and other assets without a court order. Don’t put your head in the sand if you think you might owe taxes. Most importantly, don’t wait to file your tax return just because you know you might owe the government money.
So, the next question you should ask is, what CAN I do if I owe the IRS? Well, there are several options:
If you owe a small amount and you can pay if off in less than six months ask the IRS for an installment plan. The interest and penalty will continue but you should be able to resolve it quickly.
If you cannot pay the tax due in a short period of time, you should consider filing a Chapter 13 repayment plan under the Bankruptcy Code. The Chapter 13 Plan will allow you to repay your taxes without interest and penalty continuing to accrue. It also stops the IRS from collection activity as well.
Why is filing your tax return on time important? Under current bankruptcy laws, taxes may not be discharged if your return was not timely filed, even if it meets all the other criteria for discharge.
Taxes are a complicated matter. You may end up with more than you bargained for if you try and resolve your tax problems on your own. Contact Ebert Law Offices to discuss your tax problems. Let us help you get back on track and get a good night sleep!