Do You Owe Money for Your 2011 Return

Do You Owe Money for Your 2010 Return?

Asssuming you are owed money by th IRS for the year 2011, there are anumber of ways you can effectively use this "receivable" in advance of your actually receiving the money.

The first would be to go to your bank. Advise them of your situation and see what they suggest. You could also approach creditors and make arrangements to assign this receivble over to them and apply that to your debt.

Still another possibility would be to pledge this future asset as collateral for a purchase. For example a new car, real estate purchase, etc. Checking with the IRS for suggestions is a good idea also. Naturally you will have to prove to anyone willing to fund your receivable that you actually own money from the IRS.

To do this effectively you will have to engage the services of a certified tax preparation firm, such as H&R Block, a CPA, attorney or notary public. With their certification your receivable should be marketable for many uses. If you are having trouble with your credit situation, it is possible this asset could be used to dramatically alter your current situation.

Checking with your credit card company and other debt consolidation agencies could provide additional favorable used for this asset. Finally, consulting with a debt consolidation agency could give you a way to "kill many birds with one stone".

You could, theoretically, appease more than one creditor by using a debt consolidation agency to act as your agent to a number of debtors. One important consideration is timing. When will you actually receive your money. The IRS can be slow and unpredictable in mailing out checks. I don't believe they would tell you when you exactly when you will receive your money. They usually use some " ball park " number of days and reluctant to pin themselves down to an actual date.

You should be able to work with whatever they tell you by writing it into your receivable pledge contract. Naturally your agreement with any creditor should contain a recourse clause. A clause that states what recourse the creditor has should you somehow default on your agreement.

Let your imagination wonder. Being owed money from a reliable source is an enviable position.