Short of emigrating to a Third World country and revoking your US citizenship there, never to return to your homeland again, there is nowhere to hide from the IRS. From seizing your property to having you thrown in jail, the IRS is arguably the most powerful government agency with regards to citizens on home soil. Why run or hide when you can settle your tax debts?
Federal tax lien
Without going to court for a warrant, the IRS can place a lien on your property and assets, even if it was purchased after the tax became due. While this is automatic within 10 days of the IRS sending you the tax bill, if it becomes obvious that you are not paying the bill for whatever reason the IRS can register the lien with public credit reference agencies.
This is about as bad a record on your credit rating as it is possible to get as the cost of credit from credit cards to car loans and mortgages are going to rocket for you.
Millions of Americans seem to be able to shoulder a bad credit rating without huge inconvenience so you too may shrug it off. The IRS will still come after you.
Interest and penalty fees
The IRS encourages you to pay quickly as, according to its website, “The rate & any applicable fees your credit card company or bank charges might be lower than the combination of penalties and interest imposed by the Internal Revenue Code.” Yup – it is cheaper to get an expensive cash advance on your already high-interest credit card than to incur the penalties and interest on your tax debt!
All property and money seizures will need to cover the basic tax debt, penalty payments and interest accrued on the debt – do not expect leniency for handing over your car keys without challenge!
Levy on income and bank accounts
Unlike any other federal agency, the IRS can order your employer to pay them a chunk of your income out of your employment pay. The penalty to the employer for refusing can be ugly so you cannot just buy your boss a good dinner or tickets to the big game to change their minds!
The IRS can also take money directly out of your bank account. While being unable to borrow money is one thing, having to live on the cash in your wallet is quite another. The security risks are a pain in the backside but with so much of our purchases being made online, life would soon get complicated if we went cash only.
Property seizure
Yes, the IRS can do this too. You have a choice in these instances – either sell your asset quickly, often at a majorly reduced price relative to its value or the IRS will seize it themselves and sell it on – often for less than what it is worth.
The IRS cannot make you homeless, but it can seize second homes, boats, and even your car (as long as you can’t prove you need it for work).
Prosecution
If
you are engaged in criminal tax avoidance, then the IRS can prosecute
you and have you thrown in jail.
Sell up and live in another country?
You cannot run to another country either! The first thing the IRS can do is have the State Department annul your passport and you cannot, therefore, travel to a third country from there. The State Department will offer you temporary papers for travel only to the USA to face justice.
If you stay put? You cannot travel back Stateside under any circumstances thanks to having no passport. Community is core to what most people need in their lives – our friends and family are the things that made us. What happens if your mom or sister gets very sick and you want to be at their bedside? You are kinda stuck there – face justice or never say goodbye.
There is another way…
Many of these penalties and punishments are only in place to bring you to the table to negotiate a settlement. Get in touch with a tax resolution firm like us at Defense Tax and negotiate as soon as you receive your tax bill. Millions of Americans struggle to pay their bills every year yet in negotiating with the IRS repay at relatively low-interest rates and over a longer period. Others still agree on offers in compromise with the IRS where they repay only a fraction of the bill, they owed in the first place.
Call us today to discuss your tax problems and avoid the nightmare that the IRS can impose on your world!