No. of Recommendations: 0
I don't know the specifics of your story, but I wonder how and why you decided to pay the IRS first before paying on anything else?

We were notified 2 years ago that the IRS decided we owed about 2700 in taxes for a reimbursement we received that the IRS determined was income. WE have been slowing paying on it, and fairly irregularly at that. Every now and then we get a stern notice that they are planning to seize our bank accounts by a certain date. I call, get another extension. I pay my other bills first.

The IRS charges fairly reasonable interest, they have not notified credit bureaus. In my mind, I'd be very foolish to make them priority #1. We'll have them paid off in full by next month anyway, but the short moral of the story is that once I got over my fear of dealing with them, they were surprisingly easy to negotiate with (perhaps because they know they can just keep future refunds if we don't pay, and they can seize our bank accounts if they need to).

I've seen several of your posts, and you always state that it is obvious that the IRS comes first, and my experience has been completely different. Before completely trashing your credit by not paying other creditors, I'd renegotiate payment terms with the IRS...

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.