There is nothing worse than looking at your paycheck and seeing that the IRS has basically seized every cent you were paid. Being garnished is a terrible experience.
Fortunately, the IRS does not want to levy your wages. They don’t want to take your whole paycheck.
When the IRS grabs your paycheck, they are trying to get your attention because you have been ignoring them. You have probably received dozens of letters and gotten at least two certified letters.
When you are stressed and owing money, your body and mind react in very unproductive ways. Cortisol strikes and you become focused only on the next second. You don’t have any money and so you ignore the letters because tomorrow is another day. This is natural and nothing to be ashamed of. But it is not productive.
You can pay someone $1,500 to make a phone call but you can do the same thing and take back control of your life.
If you call the IRS Collections phone number (800)829-7650, they will work with you.
Before you call, you need to gather some information.
- Your most recent paystub
- Your most recent bank statements
- A fax number for your payroll company. Just ask whoever processed your payroll.
Call up the number (800)829-7650 and explain that you are broke. If you get someone unpleasant, hang up and try again. 80% of the IRS employees are great. Ask to be put on “Currently Not Collectible” status. Explain that you don’t have enough money to pay your bills and need a break. The agent will ask you about your income, assets and expenses.
Generally the IRS will give you at least a 60 day extension.
While you are on the phone with the IRS, ask for a compliance check. The IRS agent will tell what years you need to file and how much you owe for the years you have filed.
The next is to fill out our easy questionnaire and see what kind of tax relief you qualify for.