She said: "Don’t Let The IRS Take My Kids!"

As the IRS continues their aggressive push to collect back taxes, I'm reminded of some interesting moments I’d experienced during my time working as an IRS Agent for 8 years. One in particular helps give me perspective on how much misinformation really is out there in relation to our tax system.

When someone owes back taxes, there’s a window of time at the IRS where we Agents would have the taxpayer come to the office and review the financial form we sent them. Together, we would look at it and determine the taxpayer's financial "ability to pay". On one occasion, I recall one woman brought in the form and we started to go over her information line by line.

As we began the process, she told me about her family’s financial hardship and how her children are her main priority. But when I was looking over her form, there were several sections that were left blank — in particular, the Dependents section was empty. Upon noticing the empty section, I reiterated what she said about her financial situation and politely pointed out that she left the section about dependents blank.

"Don’t Let the IRS Take My Kids!"

I explained to her that we needed to identify how many people were in her household so together we can determine proper allowable living expenses and what she can afford to pay, per IRS procedures. “Don’t let the IRS take my kids!” she said, genuinely afraid. I was surprised and taken aback that she would think the IRS (as bad as they may be) would take custody of her children simply because she owed back taxes.

I walked her through the entire IRS financial analysis process and explained existing procedures so she wouldn’t lose sleep worrying about her kids. At that point she was extremely relieved, but hers was a natural concern for people who only want what's best for their children.

The Real Collections Process

If you have any concerns about the IRS showing up at your door, here is what you should understand about the Collections process:

If the IRS is posing a debt you disagree with, you have the right to speak with a manager or exercise an appeal. You can appeal most IRS debts before and after actions have taken place, but there are strict deadlines you need to meet.

Payment Alternatives

Believe it or not, the IRS isn’t completely inconsiderate to American citizens and their financial strife. You may need extra time to pay your taxes. If so, there are several payment alternatives you can qualify for, including payment plans or an offer in compromise. But you still need to be in filing compliance with the IRS. If you’re a small-business owner, you must be in compliance with filing and federal tax deposits for the IRS to consider collection alternatives like an installment agreement. If you are facing a severe financial hardship, you may qualify for an “uncollectible” status. This is a status the IRS recognizes when individuals don’t have the ability to pay right away.

Last but not least, is your right to consult a qualified tax representative when facing the IRS. A qualified tax professional, like an IRS-licensed Enrolled Agent, can guide you through the entire process as well as advocate for you and protect your best interests when working with the IRS. Regardless of the extent of involvement with the IRS, you have a right to representation when addressing your tax issues.

Have an IRS issue?

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