Eeks, Taxes. . . Just Breathe


What to do when you can’t pay?

Awe, Taxes…Are you freaked out on how you’re going to pay?

The IRS website has been really helpful prior to spending additional money on an attorney.  Attorneys are great by the way, and are a useful tool to utilize in the right circumstances.

However, I totally freaked, depression can hit and the scenarios of “how in the heck am I going to pay for this?” rumbles through one’s mind.  You can really scare yourself, when you don’t know how to handle new situations, especially when it comes to your hard earned Benjamin Franklin’s.

Fear crowds your good judgement. Having feelings of anticipation grows into thoughts that you’re going to lose everything in your life; just so you can pay Uncle Sam, and the monkey mind takes over within you.

The unknown can be scarier than what will actually happen. You’re a student and it’s important to know your rights and fact check.  Research is one of your best tools.

The expression “go direct” really applies here.

The IRS website has been really helpful prior to spending additional money on an attorney.  Attorneys are great by the way and are a useful tool to utilities in the right circumstances.

It’s also nice to talk to someone who has more experience in the area of concern, like former student Debbie Watson, a Legalshield Representative. She’s an entrepreneur of several businesses from Colorado’s Mountain Man Nut and Fruit Company, to ostrich farming in Arizona.  Debbie now works with Wayne D. Anderson, AIA, LLC as a part-time personal assistant with experience in architecture, auto-cad from ACC, and a part-time Legalshield Associate.

I flipped out when my tax form said I owed back taxes on a student loan. Thankfully, I remembered I have legal representation, after deliberation I decided to educate myself on what I could do-call an attorney for help.

Second, I reached out to ACC’s Paralegal department and asked if the school offered advocate help.

Unfortunately, they do not at this time.  However, Debbie Watson is willing to give her time to speak about the importance of why one should have an attorney.

Debbie Watson is scheduled to speak at ACC this Summer/Fall 2017.

Next, I discovered I won’t be forced to go to prison, I don’t have to give up my vehicle nor the auto payments and I won’t need to sell everything I have, although personal property is always an option.

It’s important to keep in mind that the IRS charges a daily tax…yes, a daily tax. This is vital to stay mindful and to get the help you might need to ensure you’re utilizing all your resources in the right places, to get your back taxes paid off as quickly as possible.

Option one, you can pay online with your bank account; by debit, credit card, money order(s) or cash at specific locations.

What happens when you don’t make enough money yearly to pay your back taxes?   The IRS is offering for you to:

  • Make Monthly Installments
  • Online Payment Agreements
  • Offer in Compromise (Settle your debt for less than the full amount. Your settlement letter should include a 20% down payment as your first installment of your total debt.Then in your letter you request to pay them X amount of money until the debt is paid off.) *Legal Representation can walk you through this process or, do your homework and research as much as you can.  If you don’t hear back from the IRS within two years, this means they have accepted your offer.

If they oppose your offer, don’t give up.  They are very much more likely to help you if you stay honest and pay something, just like you would keep paying x amount to a credit card to keep your credit score raised.

  • Request a Temporary Delay Collection  You can request this if you are low income and it would be too much of a burden to pay anything additional.

Additional requests you might want to consider:

A Personal Loan is highly recommended to pay the debt off as quickly as possible, this way you are avoiding the daily tax charge.

Paying $25/month faithfully, for however many years it take to pay off your debt, with clear communication between you and the IRS.

Being independent in paying for your taxes holds you accountable for your responsibilities as a United States American.  This is your debt. Not your parent’s debt.  If you so choose, borrowing from family is not a recommendation on my behalf.

Money from family often comes with a price.  Know what you’re getting into and have a legal written agreement notarized with all parties involved.  This way everyone is protected and you keep yourself honest and accountable for your own actions.

You can register online with the IRS to view your amount you think you owe, find your balance history and more.

If you are separated, injured, divorced or widowed from your spouse and the debt was their’s, you can file Form 8379, Topic 205 “Innocent Spouse Relief.” Including “separation of liability relief, equitable relief and/or injured spouse vs. innocent spouse.”

Still have questions in understanding what you need to do?  Request a Taxpayer Advocate.

The most important thing to do is to take action before the IRS sends you a letter.

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Arapahoe Pinnacle • © Katie Wamsley, 2017