The Harsh Reality of IRS Problems
When you owe the IRS, anything you own is looked at as a way to pay off your debt to the government. Many people know that the IRS can levy your bank or garnish your wages, but few understand the true lengths the IRS will go to collect on a tax debt. According the IRS website, The IRS may seize and sell any property that you hold or that is being held for you by someone else.
It is likely that the IRS will place a lien against you, if it hasn't already. This means that anything that you own or will ever own is collateral in case the IRS finds no other way to collect your tax debt. The IRS may soon be coming after any of the following:
- Land & Houses
- Cars & Boats
- CDs & Dividends
- Retirement Accounts like IRAs and 401Ks
- Social Security Checks
- Wages & Commissions
- Rental Income
If you owe $10,000 or more, even the cash loan value of your life insurance is up for grabs. Where your IRS problems start, other problems follow. IRS problems often cause significant marital discord. This isn't just because of the financial problems associated with an IRS debt. It is also because your IRS problems can often directly impact your spouse. If you share an account with your husband or wife, they could lose everything they earn with a bank levy directed at you. If you live in a community property state, it won't even matter if you keep all of your finances and property separate. The IRS will look at your spouse's assets as a potential way to collect on your IRS debt.
Buying and renting is made incredibly more difficult because IRS problems lower credit score. This is due in large part to IRS tax liens being on your credit report. Many employers would rather fire an employee than deal with a wage garnishment, even though it is supposed to be against the law to do so. Even if you do not lose your job, those going through a wage garnishment are often left with less than $1,000 a month to cover expenses. IRS problems make it nearly impossible to keep up with bills. All of this impacts your credit score.
Because of these IRS problems, some have been forced into living under the IRS radar. They live on a cash only basis, with no steady income. They have no choice but to live on the hospitality of friends and family. They cannot purchase anything or even marry someone they are lucky enough to fall in love with. The worst IRS problem of all, is the absolute helplessness many feeling in the shadow of the IRS giant. This is why it is important to seek help from a reputable tax relief firm. Hiring the right tax professional will help you conquer all of these IRS problems and move on with your life at last!