Back to School: The job market is terrible. More and more people are taking the plunge and heading back to school to improve their odds at landing a career. But watch out; if you owe the IRS, you have to make sure you take care of your debt first. If you don’t, penalties and interest will add up, making a small debt a huge debt.

Paycheck to Paycheck: In order to balance work and school, you’ll need to have a flexible job. This usually means you’ll have to deal with a pay cut. Most students work paycheck to paycheck. So what are some good options for paying off your IRS debt when you have little to no disposable income?

Basic Needs Review: In order to qualify for any of the programs below, you’ll have to prove you’ll go without basic needs if you pay your IRS debt. The IRS is not generous with what they consider basic needs. They include clothing, food, housing, transportation, insurance, and medical bills. If you have additional debts, they don’t count. The amount of money you can spend on your basic needs is determined by national standards. For example, the IRS had determined a family of three needs only $626 a month for food.

Settlement: The IRS’s “Offer in Compromise” program allows you settle your Tax Debt for a lower amount. You’ll have to fill out a 44 page document (Form 656) and usually Form 433A as well. You will have to include a small percentage (20%) of the offer in order to qualify. Only a select few amount of people can qualify for this program. So what are some other options?

Monthly Payments: Can you pay off your debt if you pay monthly for a certain amount of months? The IRS allows people to set up “Installment Agreements” if they can pay in monthly installments. But be careful. You will be locked into a contract that can default if you miss one payment. Plus, interest and penalties will still accrue each month.

Use Care: Small mistakes are easy to make. The IRS forms you’ll need for these programs are long and filled with technical terms. If it’s over your head, or if time is of the essence, it’s a good idea to contact a Tax Help Professional that can help you take care of your tax debt quickly. You can’t get back to school with debt hanging over your head, do your IRS research, and then hit the books.

Now You Have The Smoking Gun. . . Use it!

Richard Close was an IRS-Hitman. He worked as a revenue officer for the IRS and his father was the head of the collections branch for 30 years; so it runs in the family. He left that behind and now he’s partnered with Tax Defense Network to help thousands of Americans with their tax problems. He gives the tips and tricks for you to fight the IRS and win! Visit him at: http://irs-hitman.blogspot.com or http://www.taxdefensenetwork.com or contact: email irs-hitman@taxdefensenetwork.com or 1-888-248-9058.

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