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can involve things like putting a lien on your property. If this happens, the IRS gets first claim to any monies from the sale of your property if you go into bankruptcy. Should you decide to sell your home because you want to move, you will have to clear the lien before you can sell. The IRS can also levy your financial accounts, which means it can confiscate money from your paycheck, savings account, Social Security benefits, and your retirement income. The IRS can also take your car and your boat.
Important Note: If you don't contact the IRS about your situation and a lien is filed, it is very difficult to get the lien removed before the debt is paid in full. A lien will affect your credit score and make it difficult to obtain financing for new necessities. Bottom line—be sure to contact the IRS if you can't pay your taxes.
Let’s Review__________________________________
What you don't know about taxes can cost you money. To get you accustomed to searching online for the information you need, we’ve included a few questions here that you will need to research the answers for. See how many answers you can find. Good luck!
1. Are child-support payments tax-deductible?
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2. What is the maximum tax-deductible amount that can be contrib- uted to a nonworking spouse's individual retirement account (IRA)?
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3. Are Social Security benefits subject to income tax? _____________________________________________________
4. Do married couples pay more in income taxes by filing a joint return than they would pay if they were single?
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April or Not—It's Always Tax Time 85