What Do I Do if I Owe the IRS?

Don’t panic, no matter how much your mind is screaming to find a solution. There’s hope. There are a number of solutions that may be able to help you. First, your debt to the IRS doesn’t constitute a life sentence. There is a statute of limitations on how long the IRS can attempt to collect your debt. That period runs 10 years from the date of your tax assessment. So, it’s key for the average tax payer to determine when the assessment occurred and when it will expire.

If the IRS assess your situation and determines that you cannot pay, you could be placed on what’s known as a hardship status. If you can stay in collection status for the balance of the statute of limitations, you’ll win and the IRS will lose. You are not to think of it as playing a game with the IRS. As you know, the IRS can lower the boom on anyone they feel is trying to take advantage of the system.

Without a detailed knowledge of the IRS’s collection system and how it works, it’s impossible to find a solution to your tax problems on your own. The best solution is to hire a qualified tax attorney who can work to help you find the best solution possible.