Understanding IRS Collections, Part 2

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Life happens: kids get sick, the car breaks down, work hours get cut. Whatever money you had earmarked for paying your tax debt had to be shifted to cover a financial or medical emergency. If you’ve fallen behind on your taxes, chances are the IRS will come calling.

First and foremost, you have the right to dispute the amount of taxes you owe. You don’t have to blindly accept the amount shown on your IRS notice. You have 30 days to dispute the IRS’s findings and to request a meeting with an IRS agent. If you can prove that you owe a lesser amount (be ready to provide documentation supporting your claim), you may have some recourse.

The key is to not wait until the last minute to begin the dispute process. Initiate your dispute as soon as you receive any correspondence from the IRS. You can either call the number as stated on the notice, or contact the IRS by mail at the address provided on the letter. Follow all the instructions for filing a dispute; the letter will outline the steps you will need to take to initiate a dispute.

First and foremost, you have the right to legal/professional tax counsel. If you are unsure of how to advocate for yourself with the IRS or if you have any questions regarding any IRS correspondence you receive regarding your tax debt, you can hire a tax professional to represent you in negotiations with the IRS.

Tax attorneys and IRS Enrolled Agents have the authority to represent you in IRS negotiations and they can assess your current financial scenario and formulate a course of action. A tax professional can determine whether or not you are eligible for any of the IRS repayment programs such as an installment agreement, Offer In Compromise, or Currently Not Collectible status.

Your tax advisor can also make sure the IRS doesn’t violate your rights or try to intimidate you in any way.

Facing IRS collection action is similar to medical or credit card collections, but with one key difference: the IRS doesn’t need a court order to initiate wage garnishment or asset seizure activities. You will receive a Final Notice of Intent to Levy.

In the event you face IRS collection action, you need to respond quickly to any IRS notices you receive. A qualified tax professional can represent you and negotiate with the IRS on your behalf. If you feel you need a tax pro by your side, don’t put it off.

We have licensed tax attorneys and Enrolled Agents on staff to assist you. Get started today by clicking the white “Start Chat” button in the upper right-hand corner of your screen, or give us a call.

Don’t go it alone. We can help.

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