Welcome to the Tax Tips and Insights series of First Response Resolution, LLC’s official blog! We are a specialty tax firm practicing right here near Medford in Southern Oregon. The focus of my practice is solving tax problems for individuals and businesses, IRS Representation of taxpayers, and representing taxpayers before their individual State Departments of Revenue. We offer our services online nationwide from the comfort of our client’s homes and will provide services on-site to businesses in our area upon request. Think of our firm as your Financial First Responders who specialize in saving troubled taxpayers. We help people who are struggling with tax problems get their lives back on track so they can focus on what matters most to them.
In this series of posts, we will cover the IRS Collection Process that occurs when taxpayers do NOT pay their taxes. The IRS Collection Process is the series of steps and actions that the IRS will take to collect from the taxpayer the taxes that were owed but not paid voluntarily. The IRS has many tools and procedures available to them that they utilize to facilitate the collection of taxes owed. The collection process begins with the IRS sending you a notice informing you of your tax bill, including interest and penalties, when you don’t make your required payments in full and on time. If you do not respond to or pay your tax bill after receiving the first IRS Notice, they will send you at least one more bill with updated penalties and interest that accrue daily. If you still do not pay after you receive your Final Bill, the IRS will proceed with Collection Actions.
If you agree with the tax bill that you receive from the IRS, you should either pay your tax in full before the due date or consider requesting a payment plan through one of the various IRS Installment Agreement options. If you disagree with your tax bill, you can contact the IRS and dispute the bill and explain why you believe the tax bill is wrong. If the IRS agrees with your argument, they will adjust your account accordingly and send a revised bill if necessary. You should be prepared to provide documentation to support your position and demonstrate why your tax bill is wrong.
If you are currently in bankruptcy, you should notify the IRS immediately. The bankruptcy proceeding may NOT eliminate your tax debts, there are rules around which taxes are dischargeable in bankruptcy, but the IRS may temporarily stop collection enforcement during this time. It is important to understand whether your tax debts are dischargeable in bankruptcy before filing. We can assist your bankruptcy attorney in determining the types and amounts of tax that would be subject to discharge in bankruptcy. If your tax debts are not subject to discharge, you will still owe the taxes after you file bankruptcy and the Collection Statute Expiration Date will have been tolled and extended, giving the IRS more time to collect on those tax debts. Stay tuned as we continue to cover the IRS Collection Process.
If you or someone you know is in the midst of an IRS issue, contact me at either 541-293-8449, by email at firstname.lastname@example.org, or through our website. We specialize in solving tax problems! We know how to defend taxpayer rights and will thoroughly investigate and evaluate your specific situation and consider ALL OPTIONS available to you. All discussions are kept strictly confidential, and we offer no obligation initial consultations of up to one hour.
Is your agency interested in having me speak to your team of realtors in person or over Zoom at one of your weekly sales meetings free of charge? I have a presentation developed to address the following:
- Taxation and your clients,
- Tax tips for saving on your own tax returns, and
- Tax Problem Solutions.
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