Be Nimble: There’s lots of Myths about the IRS out there. Some of them are so common, they’re almost textbook. And if you took any of these listed Myths as advice you’d be drowning in debt. Read these Myths vs. Realities and arm yourself with a powerful weapon…Knowledge.
Myth #1 If You Never File Your Taxes the IRS Can’t Find You!
Reality Check: They IRS will stalk you down like The Terminator stalked Sarah Connor. The IRS is a machine built to hunt you down and they WILL catch you. Your employer is sending your information to the IRS. Your Bank is sending your information to the IRS. And if you work from home and have no Bank Account, there’s a Revenue Officer near you ready to hunt you down and seize your assets!
Myth #2 The IRS can’t do Anything to you!
Reality Check: Think again. It’s foolish not to take threats from the IRS seriously. They’re loaded Time Bombs and they’ll only deactivate if you efficiently and quickly deal with them. Remember, the IRS is their own Judge & Jury. They don’t have to go through a court system before they act on seizing money or assets from you.
Myth #3 Just ignore your IRS debt to make it go away.
Reality Check: “Out of sight out of mind” does NOT apply to the IRS. Procrastination will cost you big time. I’ve seen debts churn out of control and go from being $2,500 to $10,000 thanks to interest and penalty fees. Ignoring debt will not make it vanish, it will make it grow.
Myth #4 Your Debt can be settled for Pennies on the Dollar.
Reality Check: If it sounds too good to be true, it is. The infamous “Pennies on the Dollar” saying stems from a program called an Offer in Compromise (OIC) by the IRS. The guidelines for this program are rigid and few people qualify. This doesn’t stop many companies from telling you that you’re 100% Guaranteed to be qualified before they even review your case! If you go with a tax care professional- do your research and choose a business you can trust.
Myth #5 The IRS can’t touch your Paycheck or Bank Account, that’s Illegal!
Reality Check: Kiss your paycheck goodbye! The IRS can indeed “touch” you bank account and your paycheck with their dreaded Bank Levies and Wage Garnishments. The Bank Levy freezes your account and you get a mere 21 days to settle things with the IRS before they take all of your money. When the IRS Garnishes your wages they take a big percent of your Bank Account leaving you with barely enough to live on. The powers granted to the IRS in the Internal Revenue Code make it entirely LEGAL for the IRS to Garnish your Paycheck and Access your Bank Account.
Now you have the Smoking Gun…Use it!