I’ve been told that you can get your IRS debt wiped out if you were divorced and the debt was because of something your ex did. Is that true?
Yes, it’s called Innocent Spouse Relief. It can be claimed under certain circumstances such as: the debt had to have primarily been the ex-spouses, you didn’t know about the debt, or your ex-spouse was abusive to you. Under those circumstances you can apply for Innocent Spouse and have your tax debt removed.
There’s nothing you can do about IRS interest. The only way to pay less interest is to pay the debt off quicker. Now you can get the penalties removed from your IRS debt under special circumstances that I refer to as catastrophic events. Some of the situations that the IRS will take into consideration are: drug and alcohol abuse; a death in the family; a life threatening disease or medical condition, embezzlement or theft for businesses.
Other wise you’re just going to have to bite the bullet and pay the interest and penalties.
The IRS will do plenty. If you miss a scheduled payment the IRS considers you to be in default of your payment agreement. They immediately send you an “intent to levy” notice and you have 30 days to appeal your payment arrangement. If you default a second time the IRS will not renegotiate a payment plan and you will become the victim of an IRS wage or bank levy.
The IRS doesn’t just show up at your door. They do give you multiple chances to find a way to deal with your debt, so when they show up ready to seize your stuff, do not be surprised.
IRS revenue agents are able to get a “writ of entry” from a Federal Judge in order to enter your home and seize your assets. And just so you know it is very easy for the IRS to get that writ, all they have to do is have the judge sign it.