What Happens When the IRS Takes Action Against You
Although the IRS may be slow in responding to a lack of paperwork from you, once they know about it, their actions can be swift and painful. Without an interceptive response, within a few days or weeks, you could find the IRS in control of all your income and property. Liens: in mild cases of default, the IRS will place a lien against your property, severely damaging your credit, and preventing you from selling your property or obtaining loans that could help relieve the tax debt. They usually issue a warning before taking this action. Levies: when the IRS feels a case is more urgent, they may seize your assets, which could securities, bank accounts, real estate, wages and businesses. Again, a warning precedes the action.
How to Avoid Further Tax Debt
- 9Pay attention to any correspondence from the IRS, even if you’re feeling financially strained.
- 9If the IRS threatens action against you, respond immediately. With the right actions, you can prevent IRS liens and levies.
- 9Remember that the IRS wants its money, so they will cooperate with you in order to receive it, even if it takes a long period of time.
- 9Work with the IRS to minimize taxes and create a workable payment plan for your specific situation.
- 9Seek to make an agreement with the IRS as soon as possible. If you’re having trouble keeping your agreement with the IRS, make contact with the IRS as soon as possible, to avoid future actions. (Remember, they want your money and will help you give it to them!)
- 9Create an accounting system which enables you to set aside tax funds on an on-going basis. It’s easy to pay a little each month. As you may have noticed, it’s harder to catch up, and it’s very difficult to pay a large lump sum when you’re unprepared.
How Tax Matters Solutions Can Give IRS Help
The professional CPA’s of Tax Matters Solutions specialize in tax debt relief. Acting swiftly, they will file the appropriate requests to prevent IRS actions against you. If possible, they will reduce your tax liability by means of tax programs. In all cases they can negotiate with the IRS a reduction of damages and the best payment plan for you.
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