Concerns With the IRS: Our Guide to Resolving Tax Problems

Getting a tax notice from the IRS can be very stressful, especially if it threatens your current income and bank accounts. However, there’s no need to let fear get the better of you. Much like any other type of bureaucratic process, all you have to do is respond immediately and provide all the necessary documentation.

It may be comforting to know that IRS authorities send out hundreds of tax collection and tax audit letters every day. You are not a specific target, and there is no danger of anyone banging on your door because of tax issues. The truth is that most tax issues can be closed relatively quickly, especially if you contact tax resolution specialists.

Read on for a guide to different types of tax problems and how to resolve them.

Unpaid Taxes

Every year, the IRS sends millions of notices to people who have not paid their income tax. If you’ve received a notice stating that you owe a certain amount in taxes and a penalty because of a failure to pay, the first thing you need to do is understand the problem and find the underlying cause.

Check your IRS account to see if the stated amount is correct and confirm what may have happened to the payment you submitted. More than a simple case of negligence, these aberrations may be due to identity theft or lapses in administrative management

If you owe taxes to the IRS, you have several options:

Full payment – This option avoids confrontation with the IRS if you pay the amount stated on the notice. However, this is not the best option because most notices are inaccurate.

Pay correct tax – If it’s a simple miscommunication or missed payment, coordinate with the IRS to correct the tax miscalculation and get the penalties removed.

Installment agreement – If you owe a significant amount that you can’t pay in full, you can create an installment agreement with reasonable and affordable monthly payments.

For tax balances over $50,000, installment arrangements should be made through direct debit, your checking account, or a payroll deduction. For balances over $100,000, the IRS requires additional paperwork to set a payment schedule. Finalizing these provisions can take several weeks, so you should comply with the IRS requests as quickly as possible.

If you cannot pay your tax balance in full, an Offer in Compromise (OIC) entitles you to pay less than you owe. Your OIC will depend on the balance due, your assets, and your projected ability to pay in the future.

Lien

You’ll receive a federal tax lien exists after the IRS sends a Notice and Demand for Payment due to neglecting or refusing to pay the debt. When a lien is attached to your assets, your credit score will be negatively impacted.

You can remove a lien within 30 days if you pay your tax debt in full. However, if you cannot pay your tax balance, you can contact the IRS for a discharge.

Levy

If you have neglected or refused to pay tax, the IRS issues levies 30 days after sending the Final Notice of Intent to Levy and Notice of Your Right to A Hearing. A levy is a serious warning the IRS uses to collect money from taxpayers. In extreme cases, it involves the seizure of owned property.

If you receive notice of a levy, you should immediately arrange a payment schedule with the IRS. You can accomplish this over the phone, and ask authorities to send you the release through fax or email. Afterwards, send this release to your employer or banker to stop a wage or account levy. 

Conclusion

The IRS sends notices to tens of millions of taxpayers each year because of unpaid taxes or unfiled returns. It’s vital to respond to a tax notice as quickly as possible to solve the problem within a few days or weeks to prevent financial consequences. An expert tax professional will be in your corner and help protect your rights from beginning to end.

If you need tax resolution services, our experts at Axiom Tax Resolution Group can help put an end to the stress associated with IRS tax problems. We have a wealth of tax knowledge and first-hand experience to help you find a fair resolution to any tax issues. Request a free consultation today!