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The Internal Revenue Service (IRS) is one of the most feared federal agencies on the planet, and for good reason. Like many government agencies, its power and authority have grown over the years. The IRS now collects over two trillion dollars a year from taxpaying citizens. Not bad for an ad hoc commission that was originally intended to be temporary. That’s right! Even its creators did not believe in an annual income tax. But since he desperately needed funds to wage the Civil War, President Abraham Lincoln and the US Congress approved a temporary war-time tax. The revenues raised through tax collection helped the Union win the war. It also gave the government the funding it needed to increase its influence by dint of expansion. The IRS has the resources and the legal right to go after people who owe them money. In fact, they don’t even need incontrovertible proof. All they need is reasonable suspicion. The IRS audits more than one million US citizens each year. These audits often result in a tax debt. And once the IRS has you on their radar, they will hound you until the total tax debt has been paid. What can they do? If you owe back taxes to the IRS, they can place a lien on your personal property. A tax lien is used as security for back taxes. It gives the IRS the legal right to seize said property and sell it at public auction if the tax debt is not repaid. This action is called a tax levy and it is often used as a last resort. The Process A tax levy can only be implemented if the IRS takes the proper steps. To begin with, they must send you a Notice and Demand for Payment. This letter should let you know exactly how much you owe in back taxes and how long you have to pay them. If you have any questions about your IRS debt, you should contact an experienced tax advisor immediately. Dealing with the IRS can sometimes make your tax issues worse. Of course, the worst thing you can do is to ignore an IRS notice. If you do, the IRS will send you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing. That notice will arrive as Registered Mail and is serious. DO NOT ignore registered mail from the IRS. Whether you pick it up from the post office or not, the IRS assumes you are in receipt of the letter. This notice is sent to inform you that you have just 30 days from the date on the letter before the IRS levy begins. What can you do? A levy notice is serious business. It is a direct financial threat. It gives the IRS the right to seize any personal property of value—cars, houses, land, just about anything with your name on the title. Stopping an IRS levy isn’t easy, but it is possible. A trained tax professional can help. A trusted tax advisor will deal directly with the IRS on your behalf and will work to stop the levy process by getting you in compliance and setting up payments or negotiating a settlement. He may not be able to make your tax debt disappear, but a talented tax advisor may be able to save your personal items from seizure and sale. For more information about back taxes or tax debt visit http://www.txmstr.com.
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