The answer to the question of whether you should fear the IRS depends on what you are doing to resolve your tax debt.\u00a0 If you are filing your returns, hiring a professional, and participating in the process, then you don\u2019t need to fear the IRS.\u00a0 If you are ignoring the issue and hoping it will go away, then yes, you should fear the IRS.<\/p>\n
The IRS is a very powerful collection agency and they will empty your bank accounts, show up at your home or work without notice, and seize your paycheck and Social Security payments just because they can.\u00a0 Unless you are working with them, they are your enemy\u2026 one that is far more experienced in battle than you.<\/p>\n
I suggest those with significant tax debts, say over $25,000, hire a professional to fight on their behalf.\u00a0 The IRS has a well-deserved image of being ruthless and, I can tell you from a decade of experience, that they take advantage of the uninformed.\u00a0 Those who fear the IRS don\u2019t know the process to make to gain an advantage.<\/p>\n
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For example, unless you know that you have the right to a Collection Due Process Hearing, or to bring in the collector\u2019s manager to resolve a dispute, you will be left to the mercy of whoever is assigned to your case.\u00a0 Unless you know that you have 90 days to file a Tax Court petition in certain circumstances, and also know how to file that petition, you might lose out on a refund or other remedy.\u00a0 Unless you have a solid understanding of the collection statute of limitations and your rights when it comes to wage and bank levies, you are at a significant disadvantage.\u00a0 In that case, you should fear the IRS.<\/p>\n
The bottom line is that the IRS is a very scary agency whose computers are connected to every other agency and into the world banking system.\u00a0 They will eventually track you down and grab whatever you leave hanging out there for them to seize.\u00a0 Cash in the bank is like a pie cooling on a windowsill to an IRS agent.<\/p>\n
If you are not participating in the collection process, and you don\u2019t hire someone to deal with them on your behalf, you should fear the IRS.\u00a0 Remember that they can also seize any business assets and your home.\u00a0 The IRS will not hesitate to close down your business, especially if you owe payroll taxes.\u00a0 In the most severe cases, they will force the sale of your home at auction.<\/p>\n
One reason we fear the IRS is because the government wants us to be afraid, be very afraid, of the great collector.\u00a0 This fear brings in billions of cash and causes Americans to pay up without the IRS ever lifting a finger to collect.<\/p>\n
The primary reason we fear the IRS is all of the stories we hear in the news about people going to jail for not paying their \u201cfair\u201d share.\u00a0 In March and April, these stories get into every newspaper, magazine, periodical and TV newscast.\u00a0 And these stories don\u2019t just show up by accident.\u00a0 They come from press releases that the IRS posts to its website and pushes out to the various news outlets.<\/p>\n
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