Perhaps you’ve received a letter from the IRS recently and have been informed that they’re beginning the collection process of delinquent tax liability debts and that you are one of those debtors. On the other hand, perhaps you haven’t gotten a letter, but anticipate getting one soon, now that the IRS has resumed collections after the COVID-related pause of last year. Remember, they can go back for ten years to collect from past-due income tax filings. Knowing that you owe a large sum of delinquent back taxes without realizing precisely what can or will happen next could be keeping you up at night.
What Should Concern You About Your IRS Tax Debt?
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Final Collection Notice – If you owe back income taxes, you may have or will receive a series of collection notices that inform you that you owe a certain amount to the IRS. They will tell you the amount, but they will not mention your rights to due process. Once you receive the “Final” Notice, you only have 30 days to request a due process hearing or trial. About 45 days after that, unless you act, expect to have your assets placed at risk in collections activity.
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Current IRS Targets –
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Individual taxpayers with an outstanding tax debt of any kind who have not contacted the IRS regarding payment arrangements;
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Taxpayers with longstanding delinquent tax liabilities who have yet to respond to notices;
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Taxpayers with over $100,000 of debt not included on a filed return but reported as your income by a third party;
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Those who file for bankruptcy with foreign and domestic bank holdings;
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Employers who do not adequately file payroll activity after issuing W-2s to employees;
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Tax debtors with assets in foreign countries.
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Possible Actions That May Be Taken Against You;
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Liens & Levies – The IRS can issue a lien claiming entitlement to your assets, including funds. They also can claim priority for their lien over any money you intend to pay to another entity, thus creating poor faith with those you owe. This can freeze the debtor’s access to getting loans or even being paid by their debtors. The IRS will also inform your financial partners of your debts to them, creating embarrassment and general difficulty in personal and business financial actions. IRS levies are the next level, taking money out of your wages or bank accounts directly. Levies can hamstring your finances until you arrange a payment plan. Liens or levies stay in place until repayment is completed or a payment arrangement is satisfied.
There’s Hope for Those Owing Large Tax Liabilities
Do you owe back taxes from 2020 or even before that? Is the amount you owe overwhelming you? If you owe less than $5,000 to the IRS, you should contact your nearest IRS office as soon as possible to discuss a payment plan. Myrick CPA can offer guidance regarding your next steps and what you can do to get your tax bill paid as quickly and painlessly as possible.
If you owe $10,000 or more, the process of getting out of debt with the IRS can be more complex, requiring direct professional negotiation with the IRS for your most favorable outcome. Our Myrick CPA Tax Resolution program may be just what you need. Let us deal directly with the IRS, taking the worry and stress out of the process for you. Start sleeping better, knowing we have your back with the IRS.
Don't ignore the situation or spend excessive time worrying about it. Instead, schedule a free consultation with the tax professionals at Myrick CPA