Seniors may have accumulated tax liabilities from their working years or from their retirement income. If you have tens of thousands in IRS tax debt, you could be at risk of tax liens, levies, and other issues.
IRS Collection Actions
The IRS can levy up to 15% of your Social Security benefits if you owe back taxes. Retirement accounts are not commonly levied, but the IRS has the power to seize funds in these accounts in extreme cases when taxpayers fail to cooperate.
You may also be at risk of the following IRS collection actions if you owe tax debt:
- A Notice of Federal Tax Lien may be filed against your home. This could make it difficult to sell your home, refinance, or get a loan.
- The funds in your bank account can be levied up to the amount you owe in back taxes, penalties, and interest.
- If you owe over a certain amount and your debt is considered seriously delinquent, the IRS can ask the State Department to revoke or deny your passport.
- Your federal and state tax refunds may be seized and applied to your tax debt.
You should receive a notice in the mail before the IRS takes any of these actions. Read every IRS notice you receive and call a tax attorney if you aren’t sure how to respond.
Tax Resolution Options
If you can afford to make monthly payments, an installment agreement may be a good option. The IRS will refrain from levying any of your assets as long as you abide by the terms of your agreement.
You also have options if you can’t afford to make monthly payments. You can request currently not collectible status to temporarily halt collection activities. You may also submit an Offer in Compromise to settle your tax debt for less than you owe.
Other strategies, such as innocent spouse relief or penalty abatement, can also reduce the amount you need to pay back. The IRS may avoid levying your property if you are experiencing a financial hardship, but you have to contact them and provide the necessary information.
If you are receiving IRS collection notices and need assistance, contact a tax resolution attorney to discuss your case.
The Gartzman Law Firm can help you with back taxes and other IRS tax problems. Use our contact form to request a consultation with an Atlanta tax resolution attorney.