Your Finance Adviser

What happened? Youve filed your taxes and youre in trouble. Maybe you filed yourself or you went to one of those companies that file your taxes for your. After finishing everything you find out you owe money! You recheck your math and deductions once, twice, three times andyou really are in debt to the IRS! Its understandable that youre mad as hell or you want to start crying, but the IRS-Hitman has some advice.

Dont panicdont ignore the debt, and do file the return. You can try to put off the debt by requesting an extension; October 15th is the latest you can put it off. This could give you a chance to come up with the money that you owe by then. But you do have to file, and the longer you wait the harder the debt will be to deal with.

Depending on how much you owe, you can try to deal with the IRS on your own, or you can seek professional tax help. The first thing you need to do however is to jump on the problem immediately! Do not wait.

Can I bury my head in the sand? I recommend against this. What happens if you wait? First of all the IRS starts sending you letters telling you how much you owe, and asks that you contact them to setup arrangements. If you dont respond to the IRS thenwell, things can get real bad real fast for you. The IRS can seize your wages, seize you bank account, or any other accounts you have. They can also put a levy on your home. Thats why taking immediate action is so important.

But wait There are options available to you. You want to take action, but you have no way to pay the debt in full. Most people cant pay their IRS debt in full, and usually its over $1,000. Not too many people have that kind of money lying around.

Setup a payment plan with the IRS.
Apply for an Offer in Compromise. This can reduce your debt to pennies on the dollar. Beware however, this is very difficult to get, and the IRS frequently denies applicants.
Apply for Currently Not Collectible status. Again this is very difficult as you have to prove to the IRS that you are living at the bare minimum.

Choose wiselyHowever you choose to deal with your IRS tax debt is up to you. The key is to make a choice, and not to bury your head in the sand. Just because you dont see an IRS-Hitman doesnt mean he doesnt have you in his sights.

Now you have the smoking gunUse it!