How to Deal with IRS Collection Efforts
The basic ways you can resolve IRS tax debt problems and avoid collection efforts.
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The IRS will recover taxes owed at all costs. Therefore, taxpayers need to ensure that they avoid aggressive collection efforts by the IRS and pay their back taxes with one of the IRS' debt payment plans. Here are the various ways to prevent or resolve issues with the IRS.
Respond to IRS Collection Attempts
The first step in tax resolution is to communicate with the IRS. Although this might not lead taxpayers to an immediate solution to their tax problem, it will help in initiating the process of a resolution. We suggest taxpayers take advice from the IRS in helping them to resolve the tax issue.
Although the IRS will suggest taxpayers pay the entire back tax amount in a single payment, there are other choices available to taxpayers to resolve tax debt issues.
Dealing with IRS Collection Methods
In cases of tax debt, the IRS may seize and sell the property and/or assets of taxpayers who do not pay their tax debt. A levy is the most aggressive IRS collection action. Taxpayers can avoid getting in deep trouble with the IRS by beginning to pay off the tax debt when they receive an IRS notice for a levy.
There are many IRS debt payment programs, including an Installment Agreement, Partial Payment Installment Agreement, Offer in Compromise, or Currently Not Collectible to resolve their tax debt problem and avoid IRS collection efforts. Every IRS program has different guidelines for qualifying, such as the financial condition of the taxpayer.
To avoid IRS collection actions, taxpayers can hire tax professionals. Complicated tax issues require deep knowledge of tax laws, IRS policies, and negotiation skills.
A levy can be stopped if taxpayers choose a debt payment program and begin to pay off the debt amount. It is to be noted that these steps to curb aggressive IRS collection actions should be done before the IRS has placed a levy on a taxpayer’s financial account(s) for them to be most effective.
Advantages of Professional Help
If taxpayers are able to pay off their tax debt in a single payment, it is advisable they do so. Those taxpayers who need to choose a payment program that can reduce, remove, or pay the tax amount in installments may require help from tax experts.
Although it sounds simple to file for an IRS debt payment program, it requires much expertise. Tax resolution companies can stop IRS collection actions and remove or reduce IRS penalties through negotiations with the IRS.