Comments on: Taxpayer Panic: What To Do If You Can’t Pay Uncle Sam http://www.getrichslowly.org/blog/2007/01/06/taxpayer-panic-what-to-do-if-you-can%e2%80%99t-pay-uncle-sam/ Common sense advice on money saving tips, how to get out of debt, high interest savings accounts, cd rates, money market accounts, mortgage rates, money management and more. Sat, 25 May 2013 17:04:08 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Last Minute Tax Tips « Keeping Nickels http://www.getrichslowly.org/blog/2007/01/06/taxpayer-panic-what-to-do-if-you-can%e2%80%99t-pay-uncle-sam/comment-page-1/#comment-83693 Last Minute Tax Tips « Keeping Nickels Fri, 13 Apr 2007 14:26:36 +0000 http://www.getrichslowly.org/blog/2007/01/01/taxpayer-panic-what-to-do-if-you-can%e2%80%99t-pay-uncle-sam/#comment-83693 [...] at all. The IRS offers several payment options. In January, CPA Brian Brown told GRS readers what to do if you can’t pay your taxes. [...]

[...] at all. The IRS offers several payment options. In January, CPA Brian Brown told GRS readers what to do if you can’t pay your taxes. [...]

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]]> By: Patti http://www.getrichslowly.org/blog/2007/01/06/taxpayer-panic-what-to-do-if-you-can%e2%80%99t-pay-uncle-sam/comment-page-1/#comment-82132 Patti Sun, 25 Mar 2007 08:47:51 +0000 http://www.getrichslowly.org/blog/2007/01/01/taxpayer-panic-what-to-do-if-you-can%e2%80%99t-pay-uncle-sam/#comment-82132 I've worked for Uncle Sam, the big guy, the IRS. The accountant is right about filing the paperwork or extension. Getting the paperwork in timely even if you can't pay works for most government debt. The nonfiling penalty is always high in every kind of government of which I'm aware. File your returns timely; you usually have three years to amend them. File an extension if you can't get your stuff together. Never miss a deadline for paperwork. But if you do miss a deadline, don't panic, just realize you'll probably owe more and get the paperwork in as soon as possible. And the longer you wait to file, the more it hurts. Never be afraid to pick up the phone and call the IRS. When you think about it, they have a whole bunch of people who won't pay and won't call. It's just easier to deal with a person who calls them. You don't even have to tell them who you are on the 800 line. You might even say, "I owe $5000 or $50,000, whatever, and I just can't pay, and I'm scared. What do you do with people like me?" Or, "I earned $100,000 last year, but I lost my job, and have no savings. My unemployment comp will run out soon." After you feel comfortable, call the IRS back and identify yourself and start talking. Even if you squandered your money in the past on wild men or women, whiskey, and song, they can't do anything about the past. All they can do is look at your present and future income and what you owe. The response posters above are right, about how when you jump over a certain line, not necessarily $50,000, things can really change and you owe more. That's just government; government has to have rules and cutoff points. Here's a real common problem: cashing in an IRA usually triggers extra taxes. Most ordinary wage earners have regular taxes held out of their paychecks, but extra income like a lump sum can cause tax liability come April 15. If you don't have alterate ways to pay like a credit card or a loan, talk to the IRS. Most people don't owe as much as Willie Nelson or James Brown. Yes, the IRS is in business to take your money, and that's going to be from the easiest source they an find: bank accounts or wages usually. Sometimes property is seized and sold, but think about that. It's harder and takes more time to seize and sell property. Most people don't owe what a Willie Nelson or James Brown did. And most people don't have seven 10 million dollar homes. If you have a regular source of money coming in, the IRS is willing to look at a way to get what they owe. It's to their advantage to help you keep working and eating, so you can pay them. If you no longer have money, like now you're on welfare, disability, or sleeping in a park on a bench, tell them. I know you've heard horror stories about the IRS. Realize that lots of people have griped about tax collectors in the past, and the government has responded. The IRS is probably the most publicly monitored government entity. IRS reps are supposed to treat you with dignity and courtesy. That's not to say you won't encounter a rude collector: there are rude people everywhere. You can complain if you get a bad one. I’ve worked for Uncle Sam, the big guy, the IRS. The accountant is right about filing the paperwork or extension. Getting the paperwork in timely even if you can’t pay works for most government debt. The nonfiling penalty is always high in every kind of government of which I’m aware.
File your returns timely; you usually have three years to amend them. File an extension if you can’t get your stuff together. Never miss a deadline for paperwork. But if you do miss a deadline, don’t panic, just realize you’ll probably owe more and get the paperwork in as soon as possible. And the longer you wait to file, the more it hurts.
Never be afraid to pick up the phone and call the IRS. When you think about it, they have a whole bunch of people who won’t pay and won’t call. It’s just easier to deal with a person who calls them.
You don’t even have to tell them who you are on the 800 line. You might even say, “I owe $5000 or $50,000, whatever, and I just can’t pay, and I’m scared. What do you do with people like me?” Or, “I earned $100,000 last year, but I lost my job, and have no savings. My unemployment comp will run out soon.”
After you feel comfortable, call the IRS back and identify yourself and start talking.
Even if you squandered your money in the past on wild men or women, whiskey, and song, they can’t do anything about the past. All they can do is look at your present and future income and what you owe.
The response posters above are right, about how when you jump over a certain line, not necessarily $50,000, things can really change and you owe more. That’s just government; government has to have rules and cutoff points.
Here’s a real common problem: cashing in an IRA usually triggers extra taxes. Most ordinary wage earners have regular taxes held out of their paychecks, but extra income like a lump sum can cause tax liability come April 15. If you don’t have alterate ways to pay like a credit card or a loan, talk to the IRS.
Most people don’t owe as much as Willie Nelson or James Brown. Yes, the IRS is in business to take your money, and that’s going to be from the easiest source they an find: bank accounts or wages usually. Sometimes property is seized and sold, but think about that. It’s harder and takes more time to seize and sell property. Most people don’t owe what a Willie Nelson or James Brown did. And most people don’t have seven 10 million dollar homes.
If you have a regular source of money coming in, the IRS is willing to look at a way to get what they owe. It’s to their advantage to help you keep working and eating, so you can pay them. If you no longer have money, like now you’re on welfare, disability, or sleeping in a park on a bench, tell them.
I know you’ve heard horror stories about the IRS. Realize that lots of people have griped about tax collectors in the past, and the government has responded. The IRS is probably the most publicly monitored government entity. IRS reps are supposed to treat you with dignity and courtesy. That’s not to say you won’t encounter a rude collector: there are rude people everywhere. You can complain if you get a bad one.

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]]> By: Steph http://www.getrichslowly.org/blog/2007/01/06/taxpayer-panic-what-to-do-if-you-can%e2%80%99t-pay-uncle-sam/comment-page-1/#comment-43008 Steph Thu, 11 Jan 2007 14:42:27 +0000 http://www.getrichslowly.org/blog/2007/01/01/taxpayer-panic-what-to-do-if-you-can%e2%80%99t-pay-uncle-sam/#comment-43008 it's amazing tho, the second you jump OVER 50K, even by a small bit, you get killed. I owe 3K this year. No fun! it’s amazing tho, the second you jump OVER 50K, even by a small bit, you get killed.

I owe 3K this year. No fun!

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]]> By: Anita @ Say No to Crack http://www.getrichslowly.org/blog/2007/01/06/taxpayer-panic-what-to-do-if-you-can%e2%80%99t-pay-uncle-sam/comment-page-1/#comment-39837 Anita @ Say No to Crack Sat, 06 Jan 2007 17:15:08 +0000 http://www.getrichslowly.org/blog/2007/01/01/taxpayer-panic-what-to-do-if-you-can%e2%80%99t-pay-uncle-sam/#comment-39837 Nowadays, if you're an American and in the lower couple tax brackets, it's hard to believe that you would need this advice (although it is very good advice). The reason is that current tax law almost always provides big refunds to anyone making under 40-50K per year. It's amazing, I have friends who get larger refunds than they paid all year in taxes (due to AEIC). Nowadays, if you’re an American and in the lower couple tax brackets, it’s hard to believe that you would need this advice (although it is very good advice). The reason is that current tax law almost always provides big refunds to anyone making under 40-50K per year.

It’s amazing, I have friends who get larger refunds than they paid all year in taxes (due to AEIC).

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