The IRS collection process is fairly straightforward,
- You file your tax return;
- If you do not pay your tax liability in full, the IRS assesses you tax, interest and penalties;
- A Statutory lien arises – this is often referred to as a silent lien because it is not recorded by the IRS in a public domain. Accordingly, most taxpayers are unaware that the IRS has filed a lien on their property;
- The onslaught of IRS billing notices and demands for payment are mailed to your last known address;
- If you owe > $10,000, the IRS files a notice of federal tax lien. This is a public filing which is usually done at the local county court house;
- When the IRS sends you is Final Notice, your 30-day appeal period begins;
- The IRS then begins to garnish/levies/seize W-2 wages, SS benefits, retirement distributions, and will seize your assets, including monies in the bank. The IRS will do whatever it deems necessary to collect the monies due it.
To resolve your tax debt,
- You need to be tax compliant;
- Your tax representative needs to be talking to the IRS; and
- A tax resolution proposal must be proposed to the IRS that it finds acceptable.
To be tax compliant,
- You need to be current with your tax return filings;
- If multiple years of unfiled tax returns are due, the IRS will often accept the last 6 years;
- If you are a W-2 wage earner, you need to have sufficient federal income taxes withheld;
- If you are self-employed, you need to be making your quarterly estimated tax payments; and
- If you are a business with employees, you need to be timely making your payroll deposits.
Talk to the IRS,
- The IRS is willing to work with taxpayers who meet their promised dates;
- This includes the filing of any missing tax returns;
- Making current year’s tax payments; and
- Making that proposal to resolve the tax debt
Collection Alternatives:
- Currently Not Collectible – simply put, you lack both the assets and the monthly income to pay the IRS;
- Offer in Compromise – Offer to settle the debt for less based upon an inability to full-pay
- Installment Agreement – form of payment plan similar to an installment sale
If you have any questions or wish to schedule a consultation on how to resolve your IRS tax issues, please contact us by clicking here or calling us at (610) 594-2601.
About F. Bryan Haarlander, EA, CTRS:
Bryan Haarlander is an IRS licensed Enrolled Agent who owns and operates Keystone Financial Solutions, Inc., a specialized tax services firm serving clients in the western suburbs of Philadelphia, PA, which includes the cities of Chester Springs, Coatesville, Collegeville, Devon, Downingtown, Exton, Frazer, King of Prussia, Paoli, Philadelphia, Phoenixville, Pottstown, Radnor, Reading, Wayne, West Chester in Berks, Chester, Delaware, Montgomery and Philadelphia Counties, as well as clients in Delaware, New Jersey, New York and throughout the continental USA.
A Certified Tax Resolution Specialist, Bryan is well-known for his IRS tax resolution expertise and his book How to Resolve Your IRS Tax Debt Problems.
Copyright © 2019 Keystone Financial Solutions, Inc. All rights reserved. Content in this blog is for educational purposes only and should not be considered as the rendering of tax, legal or investment advice. The publisher of this blog makes no representations as to the accuracy or completeness of any information herein, will not be liable for any errors or omissions, and shall not assume liability for any losses, injuries, or damages from the display or use of this information.
