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. These services are referred to in many ways such as Tax Problem Resolution, Tax Relief Services, Tax Resolution, IRS Resolution, Tax Controversy, etc. 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.
We left off on the topic of IRS Notices, specifically LT11 and LT1058, which are notices to absolutely pay attention to and appropriately respond to. While these are letters informing the taxpayer that the IRS has Intent to Levy their assets, many people are not aware of another automatic function that occurs earlier in the collection process. Under IRC § 6321, if a taxpayer fails to pay their tax bill in full after Notice CP14 has been issued, an automatic “silent” Federal Tax Lien attaches to the taxpayer’s property or rights to property as of the date of assessment. However, if the IRS fails to send the CP14 notice within 60 days of the tax being assessed, the automatic silent lien is prevented from coming into existence. It is referred to as silent because creditors are not aware of this lien. This is why the IRS will eventually file a Notice of Federal Tax Lien to notify creditors of their senior position among creditors.
Taxpayers should generally respond to these previously mentioned IRS Notices in the same manner. If they agree with the tax owed and have the ability to pay, they should pay their taxes. If they disagree with the tax assessed, they should either directly contact the IRS themselves or engage a licensed tax professional to represent them before the IRS and explain why the tax should not be owed or make the case for a collection alternative. When these steps are not taken, the IRS may Levy salary, wages, social security, pensions, retirement accounts, bank accounts, or other property and assets. The U.S. Department of State may also revoke a passport or decline to issue or renew a passport if a taxpayer has delinquent tax debt in excess of $55,000. In order for the IRS to legally pursue many of these actions, they must have sent out the previously listed IRS Notices in the correct timeframes as required by law. Hiring a competent tax professional who understands these IRS procedures to represent you can potentially catch errors made by the IRS which will help your case.
There are a number of additional IRS Notices that may be sent out that inform taxpayers of the right to request a Collection Due Process hearing with the Independent Office of Appeals if they do so within 30 days of the date indicated in the letter. All of the notices are sent via certified mail and could include the following: LT11, LT75, Letter 1058, Letter 3172, CP90, CP91, CP92, CP297, CP77, CP177, and CP242. If you receive any of these letters, pay attention and respond appropriately. We can assist with your response and will evaluate your specific circumstances.
The IRS and taxes in general can be complicated and intimidating. If you have received IRS Notices regarding back taxes owed and are facing potential Tax Liens and Levies, it is well advised to seek competent representation when dealing with the IRS. Most people would not go to court and face litigation without an attorney, and it is in your best interest to engage a qualified representative to deal with the IRS on your behalf. If you or someone you know is in the midst of an IRS issue, contact me at either 541-293-8449, by email at zach@firstresponseirs.com, 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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