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> How is paying a percentage of the loan balance as taxes worse than paying the entire loan balance? The IRS is much more aggressive about collections and will
by sedachv 10y ago
> How is paying a percentage of the loan balance as taxes worse than paying the entire loan balance?
The IRS is much more aggressive about collections and will seize your property and garnish your wages:
https://www.irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien https://www.irs.gov/businesses/small-businesses-self-employe...
https://www.irs.gov/businesses/small-businesses-self-employed/levy https://www.irs.gov/businesses/small-businesses-self-employe...
When that 25 year forgiveness kicks in the tax money will be due all at once. Even with a payment plan the IRS collection schedule is 3-5 years. 30% of a lot of fake income is still a ton of money. This "debt forgiveness" will force a lot of people into bankruptcy, which btw does not discharge all tax obligations (http://www.nolo.com/legal-encyclopedia/will-bankruptcy-stop-irs-collecting-tax-debts.html http://www.nolo.com/legal-encyclopedia/will-bankruptcy-stop-...)