I have been in the business of helping those with delinquent taxes for over ten years. My company has solved tax problems for over 10,000 clients. We have interviewed over 50,000 prospects. Even with those big numbers, I am always baffled that people wait for the IRS to garnish their paycheck before taking action.
This is especially true these days with all the help around. I count at least five companies advertising on national TV. Substantially more use radio. A dozen companies still solicit clients through direct mail. People with tax problems are exposed to companies offering solutions 2 -5 times a week. Of course, the IRS backs that up with constant threatening letters.
Even with all the advertised help and IRS threats, most will not take any positive action. An IRS wage garnishment is an extremely painful experience. If not resolved quickly the garnishment can permanently damage your finances. Almost always short-term financial damage is encountered. Yet the garnishment is easy to avoid. So why do people wait to take the financial punch?
It’s like the guy sawing a hole around himself on the ice. Suddenly he is in the cold waters and cannot figure out how he got there or what to do next. I’ve spent years observing the destructive effects of tax garnishments. Finally, I think I have figured out why people wait for the IRS to clobber them and figured out how to get folks off IRS death row. I have come to believe there are four basic factors at play.
Fear of the IRS: Of course, their reputation does not help so this is easy to understand. However, in my many dealings with the IRS, I have found they are generally reasonable. Further, the IRS wants to make a deal with you, but you must instigate it. No doubt, IRS agents are easier to deal with before a garnishment than after. So do not be scared to make the call to the IRS or a tax professional.
Tax Debtors tend to be Procrastinators: In my many marketing studies, the only common factor I found was that tax debtors tend to procrastinate. Most will continue to procrastinate until the hammer falls. This is truly one of those cases where no action is usually worse than the wrong action.
Financially they are Unable to Pay: This is understandable. After all, if you had the money you would pay and that would be the end of it. Additionally, tax professionals charge from $3,500 to $10,000. For this reason, we developed a “Do It Yourself Tax Relief Kit” and it is easily affordable for everyone.
An Acceptable Solution is Unavailable: The quandary of writing the IRS a check, getting on an unreasonable payment plan or hiring an expensive tax attorney is a difficult one. This is why we developed the Do It Yourself Kit to tax resolution. We hope it will serve many well. Its goal is to resolve the “Garnishment wipes me out” dilemma.