Owe Back Taxes / IRS not a friendly collector

kst$ · #1 05-23-2008, 12:45 PM

The IRS will do anything they can to get the money you owe to them. Including leaving you as poor as a church mouse. This seems pretty ruthless to me.

Quote:

Here's the deal... you owe back taxes to the IRS. You don't qualify for any special programs to reduce the debt you owe, so the IRS has offered to set you up in an Installment Agreement monthly payment plan. You can now pay off your tax debt just like you would with a credit card. Things with the IRS are never that simple.
A world of pain... The first thing you need to know is that an IRS payment plan is not going to be to your advantage. Your "minimum" payment is going to be high, and may not even be possible for you to maintain.

Paying Your IRS Tax Debt - One Step Forward, Two Steps Back Part 1
By richard close

I heard of agencies that could help you pay off your back taxes. I think I would definatly check these options out throughly. Because there is no way to live with the plan the IRS may have for you.

moneysense · #2 05-23-2008, 06:31 PM

You can set up a payment plan with them, and the payments are not that high, of course, you will get interest and penalities, but the IRS will work with you on these if you can show good reason.

The IRS will work with you on this, I know that to be a fact because we make monthly payments to them and the stimulus money we would get would be applied to this amount bringing it down if not wiping it out.

I-luvmoney · #3 05-24-2008, 12:43 AM

This is something that happens more often then one realizes but i dont think is anyone fault most time the employer who dose not take enough taxes out of the employees and or the self employed have a really good year and have to pay more to the irs but either way they want their money that is for sure and they will work with you in most cases it you ask for the help[

moneysense · #4 05-28-2008, 11:47 PM

We are both self employed and it is not income tax that we end up paying, it is the self employment tax that needs payed.

This tax is one that is counted towards your social security income when you retire.

But, as you said, when self employed people have a good year, this tax can be rather high.