|
The Internal Revenue Service (IRS) mails out millions of frightening missives each year. Most of these letters involve minor offenses that can be dealt with in a jiff, without a visit or a call to a local IRS office. But every now and again, the reason for the correspondence is quite serious. Over twenty million Americans owe money to the IRS, according to a recent estimate. Like any other collection agency, the IRS is more likely to focus on the folks who owe them the most money. People who owe tens of thousands of dollars in IRS back taxes will hear from the feared federal agency in due time. IRS Levy Process If you owe a substantial sum in IRS back taxes, you will receive urgent letters in the mail dunning you for payment. If these missives are ignored, the IRS will take off the proverbial gloves and get deadly serious. Unlike other collection agencies, the Internal Revenue Service has the power of the federal government behind it, which means they can do pretty much anything they want! The IRS can and will seize the money in your bank accounts, your wages, and your personal property. Yes, they have the legal right to take your stuff to reclaim IRS back taxes. Of course, there is a process and a number of steps the agency must take before they show up on your doorstep and demand the keys to your car to cover IRS back taxes. The IRS levy process typically begins with a Notice and Demand for Payment. This letter will let you know exactly how much you must pay and when. Of all the IRS letters, this is perhaps the most unambiguous. But clarity is rarely a concern for people who receive this notice. The problem for most people is that they simply cannot afford to pay their outstanding tax balance. Because they feel hopeless and lost, some folks end up waiting around until they receive the scariest of all IRS letters— the Final Notice of Intent to Levy and Notice of Your Right to a Hearing. Once this letter has been delivered, you have only 30 days before the IRS can begin the levy process. It is at this point that most folks realize the seriousness of their situation and contact an experienced tax advisor. Because it is almost impossible to stop the IRS levy process without counsel, a talented tax advisor can be invaluable. What can a tax advisor do for me? First and most importantly, they will try to stop the IRS from taking your stuff! It probably won’t be easy. When a person chooses to ignore stacks of IRS letters, agents tend to get a bit miffed. A tax advisor must then convince the agent that his client has every intention of paying his tax tab in a timely manner. If he can do this, he may be able to save your personal items from seizure and sale at public auction. The most likely agreement in this instance is a payment or installment plan, which will allow you to pay tax debt in manageable monthly installments.
Related Articles -
IRS back taxes, IRS levy process,
| 
