Let's Talk Taxes
IRS Collection Threats. What Can They Really Seize?
If you find yourself in the unpleasant situation of owing the IRS a substantial amount of back taxes, the IRS has a defined process they follow in an attempt to collect from you. The IRS will typically send out a series of five collection notices as follows:
1. Balance Due Notice
2. Reminder of Balance Due Notice
3. Second Notice of Balance Due
4. Final Notice of Balance Due
5. Final Notice of Intent to Levy
This cycle of notices can take several months to complete. It is extremely important to respond to the IRS as early as possible in the collection cycle, and as far removed from the last 'levy' stage (Notice #5). If you continue to ignore these notices, the IRS can begin to levy wages, bank accounts, automobiles, real estate and business assets. In 2009 the IRS made 581 seizures of hard assets such as houses, cars and other personal property. By comparison, in the same year the IRS made over 3,500,000 seizures of soft assets, such as bank accounts and wages. The only way to stop the process is to pay the balance in full or file a request for an administrative meeting with an IRS Appeals Officer. Meeting with an IRS Appeals Officer usually gives you the best chance at reaching a fair resolution. You will require professional representation at the IRS Appeals Hearing. IRS problems are serious matters, and you should immediately secure professional representation from an Enrolled Agent or other Tax Professional. These issues are much too dangerous and complicated to tackle alone!
If you find yourself in the unpleasant situation of owing the IRS a substantial amount of back taxes, the IRS has a defined process they follow in an attempt to collect from you. The IRS will typically send out a series of five collection notices as follows:
1. Balance Due Notice
2. Reminder of Balance Due Notice
3. Second Notice of Balance Due
4. Final Notice of Balance Due
5. Final Notice of Intent to Levy
This cycle of notices can take several months to complete. It is extremely important to respond to the IRS as early as possible in the collection cycle, and as far removed from the last 'levy' stage (Notice #5). If you continue to ignore these notices, the IRS can begin to levy wages, bank accounts, automobiles, real estate and business assets. In 2009 the IRS made 581 seizures of hard assets such as houses, cars and other personal property. By comparison, in the same year the IRS made over 3,500,000 seizures of soft assets, such as bank accounts and wages. The only way to stop the process is to pay the balance in full or file a request for an administrative meeting with an IRS Appeals Officer. Meeting with an IRS Appeals Officer usually gives you the best chance at reaching a fair resolution. You will require professional representation at the IRS Appeals Hearing. IRS problems are serious matters, and you should immediately secure professional representation from an Enrolled Agent or other Tax Professional. These issues are much too dangerous and complicated to tackle alone!
