The IRS has an astounding amount of power. Some of this power is justified and required to allow the IRS to be a functioning entity in the ecosystem of the economy. A lot of Americans do not understand what the IRS is capable of, which is why they get caught up in dizzying situations with thousands of dollars owed to the IRS. So what is the IRS capable of? What makes the IRS such an imposing body, and how can regular Americans Get rid of old IRS Tax Debt?
The IRS Is Not the Government
The IRS is not a branch of the government. It is, in layman’s terms, a company hired by the government to collect money for the government. This gives the IRS a very peculiar speciality in the modern economy. The IRS can theoretically go out of business. They can apply liens and judgements against an individual, similar to how a creditor can apply the stipulations to a debtor. This can be combined to create a rather formidable force- a company directly protected by the federal government.
The Government’s Lifeline
A 2% drop in the IRS’s capacities can cause close to a $30 billion loss by the government. The government allows a lot of leverage to the IRS to receive the funds that they need. This is potentially why the IRS has applied a lot of new initiatives to help taxpayers get out of debt with them. The bottom line is that the government wants the money owed to them in some capacity, and they’re willing to negotiate and work with individuals to get that paid. It is actually not completely impossible to Get rid of old IRS Tax Debt at a price lower than what is owed. The forgiveness of tax debt plans has reinvented some ways the IRS collects money from Americans.
Fortunately, leaders in the United States have a lot of clouts when working with the IRS. They are able to initiate repayment plans, and judgement lien stalls to keep a client on top of the payments. In all, the government and IRS alike are willing to cooperate with the taxpayer to some degree.
