Even though you owe the IRS back taxes, you can avoid IRS collection methods such as Federal Tax Lien issues, wage garnishments and bank levies if you have a decent IRS plan. The IRS uses Federal Tax Liens as the most effective method to collect what is owed and when that happens it can cause havoc to your assets and funds.
If you have a decent IRS Plan you can use it to release or avoid having Federal Tax Lien Issues
By delinquency, if you owe back tax, you have a Federal Tax Lien issue. However, a tax lien will not affect you negatively until your creditors are advised. That’s when your IRS Plan is needed to help you resolve your Federal Tax Lien issues as soon as possible!
A good IRS plan to release Federal Tax Lien issues would be to get the lien removed temporarily. You can do this by proving to the IRS that the removal of the lien would help you in paying the tax debt. For instance, if you were able to refinance your home to obtain funds to pay back your tax liability, they may consider a temporary removal of the Federal Tax Lien so you could make that happen. This particular plan is not for everyone, but it is worth a shot if it could help you pay the back tax.
A Good IRS Plan Can Help Avoid Collections
Having a good IRS Plan on board can make it easier to avoid collections. The following are a few of the more popular actions taken by the IRS to collect:
Bank Levy – This action of collection allows the IRS to take funds from your bank accounts and ends up leaving you broke!
Wage Garnishment – This action of collection allows the IRS to take a fairly good percentage of your paycheck until the tax debt is satisfied. Losing part of your paycheck on a regular basis can send most taxpayers into a downward spiral causing them to get behind in other financial obligations.
Asset Seizure – This last resort action of collections allows the IRS to take your assets such as additional cars, second homes or anything of value that can be liquidated to pay off the tax debt.
A good IRS Plan may be an Offer in Compromise to pay down the debt with installment payments or settling on a less amount and paying it in full. Either way, it’s vitally important to immediately get a plan and put it into action.
You have to choose an IRS Plan if you want to avoid Federal Tax Lien issues.