It can happen to anyone. You make a mistake on your taxes, can’t get them in on time or unfortunately just do not have the money to pay them. Regardless of the case, when the IRS begins collections then that means they can directly garnish your paycheck, access your savings accounts or a vast array of other options to get the money you owe.

That said, the IRS is a part of the government and though we might think of them as evil, they have a variety of solutions for you to try to work out your debt with them. In the meantime, here are some examples of times when you can suspend IRS collection attempts. Hopefully this will give a little space to get yourself organized and back on your feet.

1. Negotiating an Installment Agreement

When you have found yourself in collection, this is the end goal. The IRS will work with you to pay off your debt in stages that you can afford. If you make your payments on time, then they cannot collect.

2. During a Bankruptcy Proceeding

Bankruptcy is a scary sounding word, but for some people, it ends up being the best options. Although it ruins your credit, it can give you a chance to start over. During bankruptcy proceeding, the IRS likewise cannot collect.

3. Your Business and Personal Assets are Generally Safe

If you have other assets that can be used for your debts then the IRS will not touch your business. Likewise personal items with a value up to $7,900 are off limits. Finally, they won’t take child support or unemployment.

4. Innocent Spouse

Just because your spouse got in debt, does not mean that it has to be your problem. File an Innocent Spouse claim and you should be able to escape IRS collection. Of course, this only really works if you have some separation of finances from your significant other.

5. Hardship

Once again, the IRS is not some evil monster that wants to put you out on the street. If you can show that the collections will make you unable to pay rent, buy food or afford other essentials then you can get temporary relief. Just make sure you do some research to to make it more permanent if necessary.

The Best Solution to a Problem is Avoiding It

These are just a few of the ways you can slow or stop the IRS collection process. There are many other options as well. The best thing you can do is consult the tax code and an accountant to see what you can do to find some relief.

If you do find yourself in a situation where you can’t pay your taxes, the best thing you can do is to face the problem head on. Contact a professional who can help you work with the IRS so that you can find the best way to get out from under your debt and back on the road to financial stability.

Do you owe more than $10,000 in back taxes? Protect yourself. Protect your business. Contact IRS Solver for a consultation.

Contact Us