Platinum Tax Defenders Unwraps The IRS Collections Process
- October 4, 2019
- Posted by: Platinum Tax defenders
- Category: Tax Relief
The experts at Platinum Tax Defenders have years of experience protecting their clients from IRS collection actions. However, what collection actions can the IRS take? Until you start receiving letters from the IRS, the collections process might seem like a mystery. To help you better understand the risk of not paying taxes, Platinum Tax Defenders unwraps what IRS collections process. Read on to learn how you can protect yourself from the hands of IRS collections representatives.
What Is The IRS Collections Process?
The IRS will initiate collection actions when a taxpayer makes no effort to pay or resolve their tax debt. Collection actions are the IRS’ attempts to procure the back taxes that taxpayers owe. IRS collections will typically start with a written notice. However, the collection process can escalate in a matter of weeks. The IRS collection process usually results in the seizing or selling of your property and assets. For that reason, it’s essential to act quickly to resolve your taxes once the IRS starts sending you notices.
Who Is Considered Delinquent By The IRS?
The IRS considers you to be delinquent if you don’t pay any amount of your taxes after the filing deadline. Any amount of unpaid taxes can attract IRS collection actions. However, the adverse outcomes only occur if you make no effort to pay back taxes. The IRS will be increasingly difficult if you attempt to hide and avoid interacting with them entirely.
What Is A Substitute For Return?
If you don’t file a tax return, the IRS can register one for you, called a “Substitute for Return.” The substitute for return is the IRS’ estimation of what you owe using information from past returns and reported income. When it files a substitute tax return, the IRS doesn’t account for deductions and credits for which you may qualify. As a consequence, the IRS’ estimations of your tax debt can be much higher than if you filed tax returns. A substitute tax return provides the IRS with a tax debt estimate so they can begin collection actions. Platinum Tax Defenders can help you file an amended tax return to correct the amount you owe.
What To Do When You Start Getting IRS Collection Actions Notice
When the IRS begins collection actions on your account, it will start by sending notices in the mail. The IRS notices will typically include:
- Amount of tax debt
- How you incurred the tax debt
- The deadline to pay your tax debt
The IRS prefers that taxpayers pay back taxes in one single payment. However, taxpayers have a variety of tax relief options to pay back taxes. Some of these tax relief options can include:
- Receiving a reduction in tax debt
- Getting penalties removed or reduced
- Postponing payment
When you start receiving notices from the IRS, it’s imperative to contact Platinum Tax Defenders. If you receive multiple notifications from the IRS and do nothing, the IRS will send a Final Notice of Intent to Levy. Once you receive the final notice, the IRS will not send any additional warnings.
Platinum Tax Defenders Offers Tax Lien Help
A federal tax lien is the IRS’ claim to everything you own and anything you may own in the future. Tax liens are also the IRS’ way of telling other creditors that you must pay the tax debt first. The IRS can place a tax lien on your account at any time during the collection process. Generally, the IRS will only place tax liens on debts of $10,000 or more. Tax liens can limit your ability to get credit and can lower your credit score.
Additionally, tax liens can stop you from getting security clearance for specific careers. If the IRS places a tax lien on your account, Platinum Tax Defenders can help. Don’t let the IRS lay claim to your property. Call Platinum Tax Defenders today for tax lien help.
Platinum Tax Defenders Offers Tax Levy Assistance
If the IRS places a tax levy on your account, they’ll seize your property or assets to satisfy your debt. The IRS has the power to levy your financial accounts and also garnish your wages. If you don’t pay taxes, the IRS can take funds from your bank account or a portion of your paycheck. A tax levy can give the IRS access to:
- Retirement accounts
- Rental income
- Accounts receivables
- Commissions, and more
The IRS is also able to seize and sell your physical property, such as your:
- Business equipment
The IRS will typically only seize your physical property as a last resort.
How Can I Avoid IRS Collection Actions?
The one way to avoid a tax levy, or remove a tax levy, is to pay your taxes. If you can’t pay your taxes in full, you can enter into a payment agreement with the IRS. The experts at Platinum Tax Defenders can analyze your financial situation and ability to pay the IRS. Platinum Tax Defenders can help you get an extension to pay your tax debts. If you can’t pay with an extension, you can request an Installment Agreement to make monthly payments.
Additionally, you can request to enter into Currently not Collectible status, which classifies you as unable to pay. Requests for both of these agreements will suspend levy actions. The IRS Offer in Compromise program settles a taxpayer’s tax debt for less than they owe. If your OIC request is approved, it will also suspend levy actions.
Platinum Tax Defenders Can Help Prevent IRS Levies And Liens
If you want to resolve your tax debt problems successfully, call Platinum Tax Defenders, we can begin resolution efforts as soon as you call us. We can help you avoid collection actions from the IRS. Additionally, by offering you tax resolution services, we can prevent interest and penalties from adding to your account. To get a handle on back taxes, don’t wait for the IRS to take action. Call Platinum Tax Defenders for tax lien help.