You may not want to read this as the holiday season approaches, but if you owe back taxes, pay attention.  The Grinch, Mr. IRS, cometh.  He delights in the holiday season and loves to issue bank levies and wage garnishments at this time of the year.   How could he be so heartless at this time of love, joy, and thanksgiving?  You’re a hard one Mr. IRS!

Well, it’s not personal, just good business from the IRS’ viewpoint. Many taxpayers receive year-end bonuses, commissions, and cash gifts from friends and family. Money is freely flowing and Mr. IRS doesn’t want to miss his big opportunity for collecting for the U.S. Treasury.  Unfortunately for taxpayers who owe back taxes, that means coming up short at the worst possible time of the year.

If you’ve set up a formal installment IRS agreement with the IRS to settle past tax debts, don’t think you can just skip your December IRS payment.   While many consumer loans allow for this, the IRS will not. The IRS wants their money on time, every month, like clockwork, no exceptions. Once a payment is missed, the installment arrangement may default making the entire tax liability come due immediately and taking you right back to square one.

You may be able to call the IRS and talk them into allowing you a one-time, one-month deferment of your payment if you have valid reason other than “I need to buy gifts and pay someone else other than you”. But remember: this is a one-time, one-month deferment that may be allowed once in a five-year period.  So use your deferment wisely!

The last thing people want to think about during the season is fixing their past tax problems, but  this is also the season for Mr. IRS.  He shows up at inconvenient times, he is not pretty, and will not go away.

Often times it is fear of the unknown, ignorance of the options and a sense of hopelessness that keep delinquent taxpayers on the run.  But it doesn’t have to be that way.  Talk with a tax professional so you can learn about your options for keeping your bank accounts and wages safe from you know who.  And enjoy the holidays knowing that you’ve put a plan in place that will keep Mr. IRS at a safe distance.