Things have happened, and now you are facing a tax debt. You have to figure out how to pay it off but you currently do not have the means to do so. Furthermore, you have to deal with numerous administrative letters, confusing clauses, and outright threats from the IRS to lock down all your assets if you are unable to pay up. Whether intentionally or not, you have wandered into this sticky situation and now feel that you are being treated like a criminal. But are you able to handle speaking with the IRS as an individual – or would you feel more assured with a professional company backing you in your case? Before you decide, it is worth considering these factors that are relevant to you.
The Power of the IRS
The IRS is one of the most powerful collection agencies in existence. It has the authority to access every U.S. financial entity as part of its tax collection work. Attempts at hiding behind corporate anonymity are useless in the face of the IRS which is able to affix personal liability to individual officers whom they deem responsible for the case at hand. The IRS has the authority to:
- attach a lien on a taxpayer’s property such that said property belongs to the government until the debt is repaid; and
- issue a levy on the taxpayer which freezes cash, securities and investment accounts, and seizes any property belonging to the taxpayer for sale to repay the tax debt; this includes a significant portion of the taxpayer’s paycheck.
The IRS Paper Trail
Once the IRS determines that a taxpayer owes them back taxes, a formal notification process begins, taking about six weeks between the issuance of the first notification to the final notice. After that, the taxpayer has 30 days to appeal. Once a lien or levy has been issued, the IRS is able to lift or remove them, should they be so inclined.
Time Is Not On Your Side
For taxpayers in dire financial straits, the last thing you should do is to avoid the IRS, because time is definitely not on the taxpayer’s side. Putting off payments can not only lead to issuance of increasingly severe restrictions, but it can also result in greater interest rates if applicable.
Time Payments and Offers In Compromise
An experienced attorney may apply for a time payment plan to help taxpayers settle their debts in manageable monthly installment payments. They may also choose to submit an IRS Offer In Compromise, which allows taxpayers to settle their delinquent tax dues by paying only a portion of what they owe. This of course is subject to strict eligibility requirements, whereby the taxpayer must demonstrate substantial financial hardship to even be considered.
Seeking Professional Tax Assistance
Attempting to navigate complex IRS regulations, confusing instruction booklets and threatening messages can become overwhelming for a taxpayer. In most cases it is wise to seek professional help from a tax debt resolution company like Tax Defense Partners. Being leaders in our field, we are able to successfully navigate the threats, pitfalls, and disasters that often plague delinquent taxpayers. Contact us today for immediate advice!