What tactics can the IRS use against me to collect taxes?

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www.longislandtaxresolution.com

Call us at: 631-244-1650

Call us at: 631-244-1650

1) How serious is the IRS about back taxes?

• IRS views unpaid back taxes very seriously.

• The IRS is going to come after you to recover everything you owe them.

• You might be able to hide for a few months or years without any action from them.

• But eventually, the IRS will catch up with you.

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2) How and When the IRS Will Initiate Collection Tactics against You

• Failure to comply with the IRS rules and regulations will result in dire consequences.

• Not paying your tax debts or committing tax fraud are crimes.

• IRS uses many collection methods to recover the taxes you owe them.

• It can be very damaging to your financial stability, and get progressively worse.

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3) IRS Collection Methods Include:

• Wage garnishments

• Levies

• Liens

• Property seizure

• Cancellation of business license

• Closure of business

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4) The IRS Collection Process

• If you do not pay in full when you file your tax return, you will receive a written notice stating the amount you owe.

• The IRS won’t start Collection process without informing you

• The IRS sends you a series of notices.

• The first IRS letter explains the balance due and demands payment in full.

• If you’ve received any of these notices, it’s time for urgent action.

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5) The IRS notices are in the following order:

• CP-14: The first notice, which begins the IRS collection process and is a bill of unpaid taxes.

• CP-501: The second notice that usually arrives after 5 weeks of inaction on your part.

• CP-503: The third notice that arrives in another 5 weeks to remind you of your tax debts.

• CP-504: The fourth notice called ‘Intent to Levy’, threatens to seize your state income tax refunds.

• Letter 1058: This notice is the ‘Notice of Intent to Levy and Notice of Your Right to a Hearing’.

• IRS will start taking action against you after another 30 days.

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6) You Can Appeal Against the IRS Decision

• Even if IRS initiates a Collection process against you, there is still something that can be done.

• You can appeal to the IRS if you feel that you have been unfairly targeted.

• It is possible that you have been targeted because of misinformation or a mistake.

• You have the Freedom of Information Request and Appeals Process at your disposal.

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7) When can you appeal to the IRS?

• It is possible you cannot pay your taxes because of genuine financial hardship.

• In genuine cases, you can appeal to the IRS.

• The IRS is not an evil organization.

• If IRS thinks that the taxpayer’s case is genuine, they surely consider an exception.

• You can apply for the ‘Currently Not Collectible’ status in cases of financial hardship.

• Make sure you can prove you can’t pay taxes.

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8) The IRS will check the following information before considering your request:

• Your gross monthly income

• Your allowable monthly expenses

• Your assets that can be liquidated

• Your total IRS back tax liability

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9) How to Avoid IRS Collection Tactics

• To put in a simple sentence, pay your taxes on time and in full.

• If you’re not able to do so, at least let the IRS know by requesting more time

• Qualify as ‘currently not collectible’.

• Providing incorrect or incomplete information to the IRS is dangerous.

• If you receive IRS notices, respond to them in a timely fashion.

• It is highly recommended that you hire a certified tax professional

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10) Bottom Line

• The bottom line is, if you avoid paying your taxes and refuse to communicate with them, the IRS will come after you.

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11) Contact Long Island Tax Resolution Services

• Long Island Tax Resolution Services provides expert help in dealing with IRS Collection Notices

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