Tax Debt Will Ruin Your Retirement
Updated: Nov 3, 2021
Does your tax debt have you feeling like a burden? The fact of the matter is, when you are burdened with taxes it can make retirement seem that much more difficult. You may be putting aside money for retirement now, but if you have unpaid taxes looming over your head then there will be nothing to relax on in your golden years. Tax debt can and will affect your finances around the time of retirement but there are a few things you can do to avoid this problem.
They Will Take Your Retirement Funds
Typically, neither you or the IRS have access to your retirement funds until you've hit the retirement age of 59 1/2. But as soon as you have reached that age, the IRS can go after you during your retired years. The odds of the IRS taking money from your retirement funds are never for certain, but they are also never zero.
IRS policies require the themselves to assess three factors before collecting from retirement accounts:
Is there any other property that may be utilized to settle the debt, or can an other payment plan be worked out?
Has the taxpayer displayed any flagrant behaviors? Tax evasion, unlawful income, and refusing to cooperate with the IRS are examples of flagrant activity.
Is the taxpayer's retirement assets required for necessary living expenses?
Seek Tax Debt Relief Before You Retire
It's safe to say you should take preventative measures before going into your golden years. For example, if you have a lot of tax debt and are within five years from retirement age, just consider taking actions to resolve the issue before it's too late. It's easier said than done, but there's a relief program that consolidates many major relief programs into a one-size-fits-all assistance program; The IRS Fresh Start Program. This tax relief program is catered to not just retired Americans, but to all ages with outstanding tax debt. Our clients are referred to our Fresh Start Program in order to avoid bankruptcy, acquire debt relief, and settle their debts in a quick manner. Let us give you a helping hand today!
See if you qualify for the Fresh Start Program today! Resolve your tax debt before the IRS surprises you with late fees and penalties!
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