Beware the Collection Power of the IRS!
When you owe taxes, the IRS will flex its debt collection muscles. Now more than ever, the IRS is aggressively pursuing delinquent taxpayers. Beginning with demand notices, the IRS applies more and more collection pressure, and is able to seize your home or business.
Between 2000 and 2009, IRS seizure actions grew by more than fifteen times from 219,000 to 3.4 million! In the past, public opinion condemned the IRS as heartless bureaucrats. But now, as the national deficit has mushroomed, Congress has called on the IRS to collect cash from delinquent taxpayers whose debt exceeds $345 billion.
An experienced tax attorney can help solve your problems and protect your assets. To learn how the IRS pursues delinquent taxpayers for income taxes, continue reading. Learn how to protect yourself.
STS tax attorneys resolve unpaid tax situations, protecting our clients from aggressive collection action. To speak with an STS tax attorney, call 1-800-TAX(829)-6183 or fill out our Contact Form.
Income Tax Liabilities
If you owe income taxes and can pay them, the best advice is to take care of them as soon as possible. The interest and penalties the IRS charges are the most expensive way to borrow money. If you cannot pay your taxes, knowing how the IRS collects can help lessen your stress and lead you to the right professional to solve your problems.
The IRS first sends a series of four debt notices and then ratchets up collection pressure. To protect their interest in your property and assure they get paid first, the IRS will usually file a leinagainst everything you own. With a lien, the IRS lets the world know that it has a legal claim to your property and can take it to satisfy payment. If you try to sell your property or refinance, a lien can ruin your credit and become a serious impediment.
With a lien filed, the IRS rolls out its most widely-used weapon: the levy or forced collection. Once you receive a Notice of Intent to Levy, your final warning, all your assets become fair game. Usually the IRS will send a notice of seizure to your bank and take what is in your bank account. If that’s not enough, the IRS can contact your employer and seize your wages. Some people are left to live on a paycheck of less than $180 a week.
The IRS can seize even your retirement income and your home; although that is generally reserved for certain egregious cases.
While it’s best to seek the assistance of a tax attorney before you receive the first debt notice, once you receive a Notice of Intent to Levy, your assets could be taken in short order. Contact a competent, experienced attorney immediately. The sooner you retain a tax attorney, the sooner you can put the full power of all your legal rights to work for you.
Learn about solutions to back tax debt.