The Tax Day has passed on April 15 and you are business in other issues of your life, therefore, you couldn’t pay the money you owed the IRS.
In this blog, we will show you the process the IRS goes through and why right now is the best time to call in experts to negotiate with them before things get too ugly.
IRS due process with tax debts
Like every other Federal agency the IRS is bound by laws that force it to be fair at every stage in the process of collecting tax. The first thing to note is that punitive action costs the Treasury millions of dollars a year and in negotiating with them at the earliest stage they will be less likely to spend money on such punitive action. At every stage in the process of forcing you to pay your tax bill you can stop the process by going to the table with them.
You will firstly be sent a Notice and Final Demand for Payment of your taxes that gives you at least 30 days from receipt of the letter to get in touch with the IRS to discuss your tax situation.
If you ignore this you will be faced with punitive action. These actions include:
- Wage garnishment where the IRS will force your employer to pay up to 25% of your income directly to them.
- Bank levy where the IRS can take money directly from your bank
- Tax lien on the property – this damages your credit rating to the status of being unable to get a cheap credit
- Private tax collection agency who can seize your car or other assets – right up to a real estate
- Canceling your driver’s license
- Canceling your passport
In each instance, you will be given at least 30 days notice for the punitive action of their choice to be enforced on you. As we stated earlier, at this stage and even while the punitive action is being taken out against you, you have the right to call the IRS to negotiate a reasonable outcome for you and them. The punitive action is only really there to get you to talk to them.
Call Defense Tax!
While the IRS often states it is easier for you to talk to them direct it is usually better to speak to a tax debt expert like our team at Defense Tax. Why? We can help you save money in dealing with them and in many cases can get you a better outcome from dealing with them through our expertise in tax regulations and law. In law, it is said, “The man who represents himself in Court has a fool for a lawyer!” The same applies to deal with the tax man!
In bringing on Defense Tax to deal with the IRS we can help you reduce your outgoings to the IRS in the following ways:
- Removal of punitive actions against you such as wage garnishments. This could be the first sign we are doing our job well with you!
- Removal of penalty interest and charges. In our negotiations with the IRS, we can get certain charges removed, ultimately reducing the overall amount of money you end up paying them.
- Installment plans: Differing according to how much money you owe the IRS, the installment plan can mean a fixed tax debt repayment plan that you will repay over a set period of time that could be years in some cases.
- Offer in Compromise: Though very rare, where we can prove there is no way at all you can make the overall tax bill, perhaps because you have lost your job or fallen ill, we can significantly reduce your final bill to a small percentage of your tax debt.
In these instances, you could deal with your tax bill easily and without fear of further enforcement action.
Tax doesn’t need to be taxing with Defense Tax!
The best time to call us in these circumstances is when you get your first Notice from the IRS. You will have paid no penalty interest or extra charges. In calling Defense Tax that day you will avoid all the stress and worries that come from a fight with them. That’s no bad idea, is it?