| The Backbone of Corporate America...Call center jobs | | | | and you don't have equity in anything like a house or |
| are still one of the major sources of employment for | | | | car; you could be eligible for an Offer in Compromise. |
| non-college Americans despite many companies | | | | An Offer in Compromise is where you can settle your |
| outsourcing those jobs. The jobs pay well enough for | | | | IRS tax debt for a single lesser payment. However |
| even a single mother to keep on top of her finances. | | | | that 401k withdrawal could mess your chances for an |
| Also many employees at these companies have | | | | Offer up. |
| 401ks and those are where problems with the IRS can | | | | Make your case...If you needed the 401k money for a |
| arise. | | | | hardship such as medical expenses, school tuition, etc... |
| Investing for your future...The 401k is meant to be | | | | it doesn't count as income to determine your financial |
| saved for retirement, but every year countless people | | | | status for the Offer in Compromise. However if you |
| take early withdrawal from their 401k to pay for | | | | blew them money on luxury items, or a vacation the |
| emergencies that have occurred to them. One of the | | | | amount withdrawn does count as income and it's likely |
| biggest misconceptions is that when you withdraw | | | | the Offer in Compromise will be denied. After all, only |
| from your 401k the IRS automatically takes your taxes | | | | 2% of all Offers in Compromise actually get accepted. |
| out. The fact is that they don't. You are expected to | | | | Another Option...Maybe you can't qualify for an Offer in |
| set aside about 30% of the total amount withdrawn | | | | Compromise. Your other option is that you can enter |
| for the IRS share. | | | | into an Installment Agreement where you pay a |
| A call center service associate can find a sudden IRS | | | | monthly sum to the IRS. The IRS determines how |
| debt of $10,000-$20,000 impossible to pay off; | | | | much you should pay based on your take home |
| especially if they have a mortgage and kids. | | | | income minus essential expenses. The remaining |
| So what can you do if you owe money to the IRS | | | | amount is yours, the rest the IRS expects you to pay. |
| from a 401k withdrawal? There are a couple of | | | | Of course you could always do nothing and wait for |
| options available to you depending on your financial | | | | the IRS to put a lien on your credit, levy your wages or |
| situation. | | | | bank account, or even seize your assets. |
| Too much to handle...If you're in a tight financial situation, | | | | Now you have the smoking gun...Use it! |
| you have no hope of ever paying back the loan in full | | | | |