IRS Letters saying that you owe back taxes or have unpaid tax debt are scary. I get calls from concerned clients regularly who want to know what they mean. If you file a tax return and do not pay the tax due on that return, you will get a series of notices asking you to pay up. The notices start out as informational notifications but quickly escalate to threats of collection actions like wage garnishments, bank account levies and federal tax liens.
The collection notices you can expect to receive are listed here in the order you will receive them.
CP14 Balance Due on Tax Return
CP501 You Still Owe a Balance – Reminder
CP504 Notice of Intent to Seize (Levy) Your Property or Rights to Property
If you have not paid your tax debt or arranged for a plan of resolution after receiving these notices, the threats get serious. If you get one of the following notices, you have little time to act before losing rights and getting your income or assets seized.
CP90 Final Notice of Intent to Levy; Notice of Your Rights to a Hearing
LT11 Intent to Seize Your Property or Rights to Property
These collection notices are sent out up to five week apart, so it can take months before you see the CP90 or LT11. You can make contact with IRS after the first notice to resolve the debt with an offer in compromise or installment agreement, or ask to be placed in currently non-collectible status and avoid getting the threatening notices.
If you are unable to pay your taxes, there is no need for concern. If you need help with your tax debt from a qualified tax resolution specialist contact us here in New Orleans, Louisiana or visit www.taxcrisisrescue.com or call 800-433-0986.