While it is true that dealing with credit card debt can be stressful, owing the IRS can be worse. Besides the fact that they are notorious for making persistent collection efforts, they also are quick to implement more serious consequences for nonpayment. Therefore, the best line of defense is quick contact to negotiate a plan for repayment.
Coming To Terms
It is important that you understand taxes are your civil responsibility and paying them is required. Unlike other forms of debt, tax debts can be difficult to have resolved in bankruptcy or traditional debt settlements. Luckily, the IRS is pretty understanding and willing to work with you.
Tax debt negotiation is best met by an open line of communication with the IRS. In order to negotiate a deal and reduce the risk of wage garnishment, steep penalty fees or tax liens, contact the IRS at the first sign of trouble repaying. Be open about your financial situation and be honest about what you can afford to repay. You may be able to secure an affordable monthly payment under the IRS installment plan. If your financial hardship is severe enough, the IRS may even settle your debt for less than is owed under the Offer In Compromise program.