The Internal Revenue Service (IRS) issued a wake-up call to wealthy individuals and corporations with unreported or back taxes due in mid-April. They noted that it's time to pay off the $1 trillion they owe. Otherwise, the federal tax authority is coming after them....
Back Taxes and Tax Debt
TAXPAYERS & COLLECTION DUE PROCESS HEARINGS
By law, the IRS may attempt to collect taxes up to 10 years from the date of their assessment. During these ten years, many things may occur as the IRS tries to collect while a taxpayer tries to pay or find some other solution. Taxpayers are not without rights in this...
REASONS THE IRS WILL LEVY PROPERTY
There is not much more the Internal Revenue Service can do to unnerve a taxpayer than levy his or her property. A levy by the IRS permits it to legally seize the property of a taxpayer to satisfy a tax debt. The IRS may use a levy to garnish wages, take money in a...
USING AN INSTALLMENT AGREEMENT TO REPAY TAXES
Taxpayers who fail to file a tax return or fail to pay taxes by the deadline are subject, by law, to penalties assessed by the IRS. Taxes unpaid by the original filing due date are subject to interest and a monthly late payment penalty. The failure to file a tax...
WHAT HAPPENS DURING THE OFFER IN COMPROMISE PROCESS?
Once a taxpayer successfully submits an Offer in Compromise (OIC) application to the IRS, certain events occur as the IRS considers whether to accept the OIC. Offer in compromise applications typically require specific IRS forms and substantial paperwork to document...
APPLYING FOR AN OFFER-IN-COMPROMISE
The IRS will settle unpaid tax debt with taxpayers for less than the full amount owed through an agreement known as an Offer in Compromise (OIC). Thus, an offer in compromise may be a realistic option for taxpayers hoping to resolve a tax balance due. Taxpayers who...
3 COMMON MISTAKES WHEN YOU HAVE IRS TAX DEBT
IRS tax debt can cause a lot of stress and anxiety. Some people panic and end up making their tax problems worse. Watch out for these three common mistakes when you have IRS tax debt. Mistake #1: Ignoring the IRS It may seem easy to ignore your tax debt at first. You...
PRIVATE DEBT COLLECTION OF IRS TAX DEBT
Some delinquent taxpayer accounts are now being handled by private debt collectors instead of the IRS. Taxpayers should be aware of the rules private debt collectors must follow in order to avoid scams or unfavorable tax settlements. Cases Assigned to Private Debt...
WHAT DO IRS REVENUE OFFICERS DO?
IRS Revenue Officers are tasked with collecting back taxes for high-priority accounts. If your case is assigned to a Revenue Officer, that’s a sign that the IRS is serious about collecting and/or closing out your case. Why Do Revenue Officers Get Assigned Cases?...
WHAT IS THE IRS AUTOMATED COLLECTION SYSTEM?
The IRS Automated Collection System (ACS) is used to collect most smaller delinquent tax debts. The ACS is composed of computer-generated notices and a call center of IRS employees that can handle certain types of collection actions. Dealing With the IRS Automated...