Navigating the IRS Collection Process can seem like a maze for most taxpayers who owe the IRS. It can be a very intimidating situation. Taxpayers with IRS balances receive threatening notices and not resolving balances timely and properly can end with levies, seizures of assets, and a Federal Tax Lien. While it’s important to understand all of your rights and obligations as a taxpayer, it’s just as important to understand what NOT to do. In today’s article, here is are list of 8 mistakes to avoid when resolving your IRS tax debt.
- They Don’t Open Mail from the IRS! As simple and humorous as this sounds, it’s very common with taxpayers who come into our office with levies or liens. They come to my office and give me a bundle of IRS mail, often unopened. While they are ignoring their mail, the IRS process is automatically escalating until they get hit with a levy or lien.
- They Don’t Read the Notices or Respond to Them! IRS Notices can be scary. However, not reading to responding to the notices will get the same result as not opening them – eventually a levy or lien. The good news is that if you address IRS problems early enough, there’s usually a solution that you can work with that will avoid many of the results that you fear.
- They Don’t Fight Levies! If the IRS has levied you, it most likely means that you’ve not dealt with the problem. If you’re willing to work with the IRS to find a reasonable solution, they will often release the levy.
- They don’t understand their Rights as a Taxpayer! You have many rights available as a Taxpayer that are invaluable in resolving tax debt. Learn about them and use them!
- They don’t request their right to a CDP Hearing. Always request it! A timely request for a CDP hearing gets you an appeal, puts a hold on collections, and preserves your right to take your case to Tax Court.
- They don’t understand the options available to resolve their tax debt. How can you choose the best option for you if you don’t understand the alternatives available? Understand the difference between the various installment agreements, Offers-In-Compromise, Bankruptcy, and Currently Not Collectible Status.
- They incur tax penalties and don’t request penalty abatement. Penalties and interest are often a substantial portion of tax debt. If you qualify, request penalty abatement. Most first time penalties are reversible.
- They don’t have the time to address their tax issue properly and don’t seek help. If you have the skills and time to resolve your tax debt without help, you can save money by resolving it yourself. If you don’t, it may cost you money if not handled properly. Make sure you do what is best for your situation.
Do you Need Help?
If you need help in resolving your tax debt, we can help you. Please give me a call at (972) 821-1991 or at email@example.com. To learn more about us, visit our website at https://jablonskyandassociates.com/.