IRS Collection Process – 10 Things to Know
If the Internal Revenue Service determines you have a balance due, they can garnish your wages, file and record a lien against your property, seize your assets, and levy your bank accounts. If you owe taxes to the IRS, the following information will help you understand the IRS collection process.
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1. Your tax liability is an IRS priority. Your case is likely assigned to either the IRS Service Center or a local IRS Collection office near your residence or place of business.
2. The IRS may take enforced collection, such as issuing a levy or seizing your assets, to resolve your liability. Timely communication with the IRS is critical in preventing such actions from occurring.
3. A “Notice of Federal Tax Lien” may be filed in your name, or your business’s name, attaching to any and all assets you currently own and acquire after the lien has been filed. The IRS uses the tax lien as a means of protecting the government’s interest. The IRS Fresh Start program offers qualified taxpayers an opportunity to prevent or remove the lien.
4. If you disagree with your tax liability or certain IRS case actions, you have a right to dispute them by asking to speak with a manager or exercising your various appeal rights.
5. You can appeal most IRS collection actions both before and after a specific action takes place, however there are often strict deadlines that need to be met.
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6. One of your most important rights as a taxpayer is your right to have a tax professional represent you in front of the IRS. A qualified tax professional, such as an IRS-licensed Enrolled Agent, will guide you through the IRS collection process while simultaneously advocating on your behalf and protecting your interests. At all levels of the IRS, you have a right to representation while addressing your tax matters.
7. Individual taxpayers must be in filing compliance for the IRS to consider collection alternatives, such as an offer-in-compromise or a monthly payment plan.
8. Business taxpayers must be in compliance with filing and federal tax deposits for the IRS to consider collection alternatives, such as an installment agreement.
9. Depending on the matters involved, your collection case may remain open anywhere from a couple of months to several years. As a client of Landmark Tax Group, your case will be resolved as quickly and efficiently as possible. See what our services include.
10. Your collection case may be placed in “uncollectible” status if the IRS determines you don’t have the ability to pay the tax at this time. This is a very favorable resolution for taxpayers who are faced with a financial hardship.
See: 11 Tips for Taxpayers Who Owe Money to the IRS
See: How We Resolve Your IRS Tax Problems
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Not only are we licensed Tax Relief Specialists we are also former Senior IRS Agents that now serve the best interests of taxpayers like you. We handle IRS Tax Relief matters just like yours every day.
For assistance with the IRS Collection process or another tax matter contact us today for a CONFIDENTIAL consultation with our former IRS Collection Agents. We look forward to serving you.