"The IRS can garnish wages without a court order, levy bank accounts, file federal tax liens that damage credit and complicate real estate transactions, and in extreme cases pursue criminal charges for willful non-payment."
"The IRS also charges a failure-to-pay penalty of 0.5% of unpaid taxes per month, up to 25% of the total balance. Interest accrues on top at the federal short-term rate plus 3 percentage points, adjusted quarterly."
"Every day that sits out there is just killing you. Matter of fact, if you can go borrow on a credit card and pay them off, I would."
A former kindergarten teacher owes $24,000 to the IRS and has additional debts totaling $70,000. With only $1,500 in savings and a household income of $135,000, she questioned whether she was jeopardizing her family's finances. Dave Ramsey advised her to prioritize IRS debt in her debt snowball strategy, emphasizing the IRS's unique collection powers, including wage garnishment and penalties. He highlighted the urgency of addressing IRS debt to avoid escalating costs and potential legal consequences.
Read at 24/7 Wall St.
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