If you are like many Americans, you were surprised to find out you owed taxes. Considering 51 percent of Americans have less than three months’ worth of savings, owing the IRS can really be a burden. So, what can you expect when you owe the IRS? For starters, unlike other bill collectors, the IRS’ preferred method of contact is by mail. Yes, I said mail. Since you are aware you owe taxes, checking the mailbox and opening the mail is going to be important until the tax debt is paid. The IRS will send a bill with a payment date up to three times. Collection action will start if a payment is not received by the date on the third request for payment.
It is tempting to ignore the letters from the IRS. However, it is imperative to respond because there are certain time sensitive taxpayer rights within the IRS letters. These rights are extended to protect you during the collection process. Failure to respond often results in the loss of valuable due process rights.
I have heard clients say many times ‘I could not afford to pay anything, so I did not respond to the letters.’ Did you know there are options even when you cannot afford to pay? These options include payment plans, settlement offers (offers-in-compromise), and currently not collectible status. If you are unsure how to navigate resolving your tax debt, seek the help of a tax professional. The single most important thing to do is take action. Tax debt can be fixed.
Alexandria Louis Tax Solutions, LLC – (901)414-1751
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