Many Realtors receive IRS notices that create nothing but confusion and fear if the agent is not familar with the IRS Collection Process.
I'm authorized to help taxpayers in all 50 states to navigate the IRS Collection Process, so here's information to help you gain clarity, control, and peace of mind around how the process works.
How IRS Collection Works
If you file a return with fully paying the taxes due, you'll receive a standard - and relatively friendly -- CP 14 Notice of Balance Due. How you respond really determine the next steps in the IRS Collection Process.
You can
- pay in full
- pay in part, and make a payment agreement for the rest
- do nothing.
If you choose the latter, 30 days later you'll receive the first of the IRS standard "500 series" letters. The CP-501 is a "second notice" that is much more severe in tone. And behind the scenes, serious stuff is already set in place. WIth this notice, a federal tax lien is already in existence, created by statute, to protect the government's interest.
Notice of Intent to Levy
Don't confuse a lien (a legal claim to your property) with a levy (the actual seizure of property). That's what the CP-504 or "Notice of Intent to Levy" threatens. Ignore this notice, and the IRS will actually file the lien we mentioned previously as a matter of public record to alert creditors.
The IRS can subsequently freeze your bank account, garnish your commission income, or seize other assets to sell and raise the cash needed pay off your back tax debt.
Unfortunately, I've seen many taxpayers choose to simply ignore IRS notices. Their reasoning is that they already know they owe - and they already know can't afford to pay - so what's the use of opening the IRS notice? It's only going to reinforce what they already know!!
Anchor on This
It's much more effective to "cowboy up" (or "cowgirl up"), jump on the horse, and deal with the problem head on. Don't procrastinate - take action. It's not comfortable, but will be much less costly and stressful in the long run.
If you or someone you know has questions about IRS notices, has fallen behind on taxes, or has un-filed returns, contact me at jim@anchortaxrelief.com or 757-312-0098. I'm enrolled with the federal government to represent taxpayers before the Internal Revenue Service with authority, integrity, and tenacity.
Comments(0)