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...
Back Taxes and Tax Debt
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...
WHAT TO DO IF YOU TAX REFUND IS SEIZED
Some people count on their tax refund checks to make major purchases or catch up on debt payments. When their tax refund is seized, this can create severe financial problems. Find Out Why the Tax Refund Was Offset Refund offsets can occur due to many types of debt. It...
HOW LONG DOES CURRENTLY NOT COLLECTIBLE STATUS LAST?
Currently Not Collectible (CNC) status gives a taxpayer a reprieve from many types of IRS collection activity. Once your CNC status is approved, you won’t have to worry about IRS levies or wage garnishments, at least temporarily. Benefits of Currently Not Collectible...