The IRS Collection Process Can Be Confusing and Frustrating!
As of the end of 2017, there were over 14 million taxpayers in some stage of the collection process and many of those taxpayers were in the Plano and Richardson area in Texas. If you are one of those taxpayers, you will find yourself receiving a number notices from the IRS. Those notices can create a wide range of reactions from taxpayers that range from complete fear to irritation to no reaction.
If you don’t react in the correct manner within the appropriate timeline, you may find yourself with liens or levies or with loss of rights in the collection process. Our goal here is to help our neighbors in Plano and Richardson, TX and beyond what each of those notices mean.
What are the notices I can expect to Receive?
Along the collection process, you will receive a number of notices.
- CP 14 – This notice lets you know that the a tax amount has been assessed against you, the amount due, what it is made up of, and how to pay the amount due.
- CP 501 – This is what I consider to be the first of the collection notices. It is written in a fairly friendly tone. The notice gives you 10 days from the date of the notice to pay the amount in full. This notice is important because although it is written in a friendly tone, if the amount due is not paid 10 days, an automatic silent lien is placed on your assets back to the date the tax was assessed.
- CP 504 – If the taxpayer still does not address the tax issue, within 30 to 45 days, they will normally receive a CP 504, otherwise known as Notice of intent to levy. While you will not be levied at this point, the wheels have begun turning.
- LT 11 – If you still don’t contact the IRS, you will eventually receive a LT 11 or Intent to seize your property or rights to property. The LT 11 is also known as a CP 90 or Letter 1058. The title is based on which IRS division is responsible for collection but they all have the same purpose. This is a critical notice. The LT 11 gives the Taxpayer 30 days to request a CDP (Collection Due Process Hearing) by filing Form 12153. If you’ve still not dealt with your issue, it is almost always in your best interest to Request the CDP hearing. Even if you do not intend to attend the hearing, it can buy you addition time to negotiate a resolution and if you don’t, you lose your right to take the case to the US Tax Court.
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In In order to settle your debt, you need to understand the rules and communicate properly. If you are in or near Dallas, Plano, or Richardson, TX and need help, feel free to contact me at Bob Jablonsky, EA at (972) 821-1991 or at email@example.com. To learn more about us, visit our website at https://jablonskyandassociates.com/.