| Starving Artist. The phrase "Starving Artist" holds true. | | | | This is a hard program to qualify for, you'll have to fill |
| It's extremely hard to find a job in the art field. An artist | | | | out a 44 page document and prove you cannot pay |
| can be doing really well one year, and the next they | | | | your debt in full. You'll also have to include 20% of your |
| can be dirt poor and barely able to pay their bills. So | | | | offer. If you can't even afford to do this, there's |
| what happens when an artist owes money and can't | | | | another option. |
| pay? And how can they fight back against the IRS? | | | | Hardship Plan: Need to buy time? The Hardship plan, or |
| Money, Seized! If you ignored notices from the IRS, | | | | "Suspended Collections" plan, can stop the IRS's |
| they'll roll up their sleeves and get nasty. The IRS has | | | | notices and calls for 6 months to 1 year. Again, you |
| the power to seize money from your bank account | | | | have to prove true hardship. You have to prove to the |
| with their Bank Levy. They can take a big percentage | | | | IRS that you will go without you Basic Needs (Food, |
| of your paycheck with their Wage Garnishment. They | | | | Housing, Basic Clothing, transportation, and medical |
| can even send a Field Officer to your door to collect | | | | expenses/insurance, school supplies, and work tools.) |
| your assets. How do you prevent any of this from | | | | This is not a permanent solution. As soon as your |
| happening? | | | | "grace period" is up, the IRS collections process will |
| Get to Work!: Get your head out of the sand. Even if | | | | resume full force! |
| you do not have money to pay the IRS, you have to | | | | Prevention: Artists have unpredictable income. If you're |
| reply to their notices. If you refuse to, you risk any of | | | | working freelance and land a big project with big pay, |
| methods of collections listed above happening to you. | | | | don't forget the IRS. They want their cut, so keep |
| Help for Artists: Here are methods you can use to | | | | money in the bank for when tax time rolls around. |
| keep the IRS from knocking at your door: | | | | Don't forget, if you don't pay your bills on time, interest |
| Offer in Compromise: Artists are good candidates for | | | | and penalties can easily triple your tax debt leaving |
| the IRS's Offer in Compromise program. This program | | | | you penniless. But on the plus side, maybe all the |
| allows you to settle your IRS Debt for a lower amount. | | | | depression you feel can yield some great artwork! |