P aying taxes is just a part of life in the United States and while most Americans grumble about it from time to time, it’s still mandatory. If you get behind on your tax payments, you could end up facing serious collections action and dealing with the IRS is never pleasant. If you receive a collections notice from the IRS, don’t ignore it or put off dealing with it until tomorrow. You need to take action immediately to prevent further legal action and to avoid bank levies and property liens.
Before you can work to resolve your tax problem, you need to know what you’re up against. Once you have read the letter and determined that you really do have IRS tax problems, contact the accountant who helped you file your taxes. Set up a meeting to discuss the issue with them. They should have all of your information in a file but it would still be a good idea to take all of your paperwork with you, along with the letter from the IRS. Hopefully the accountant will be able to quickly resolve the issue with the IRS and negotiate a payment plan to help you get caught up on the back taxes you owe.
If you didn’t use an accountant to file your taxes, call the number that is listed on the top of the letter that you received. You will want to document the entire conversation. This means that you should write down the date and time that you called along with the agent’s name and agent number. Discuss the letter with the agent and write down what they tell you.
In the end, if you are not able to fix the IRS tax problem with the help of your accountant, seek help from a qualified tax attorney. A reputable tax defense attorney will be able to explain your options and help you negotiate an installment plan or an offer in compromise that will stop all collections activity against you. If you need to file amended tax returns or go through audit reconsideration, the tax attorney can stop all legal proceedings against you to give you time to resolve the problem without accruing additional interest on the debt you owe.
In many cases, tax attorneys can negotiate your tax debt with the IRS to lower the overall amount you owe. By petitioning for penalty abatement or proving that you couldn’t pay the tax debt in a timely fashion due to uncontrollable circumstances, you could end up saving hundreds or even thousands of dollars on the total amount of money you have to pay to the IRS.
Receiving a collections letter from the IRS is never a pleasant experience, but there is no need to panic if you have a qualified and experienced tax attorney on your side. Whether you owe a small amount of back taxes or you are facing criminal prosecution for tax evasion, tax attorneys are skilled to assist at every level or IRS tax defense.