Tax debt occurs when you don’t pay taxes. Some people simply lack diligence in filling their returns. Others lack the funds to pay. In the case of many business owners, revenue doesn’t cover the cost of business operations and owners use payroll taxes to cash flow their business. This is not a good idea.
The IRS collects debts primarily by means of liens and levies, depending on the level of default. In less serious cases, the IRS will file a Notice of Federal Tax Lien on debtors’ property. At this point in time, these people can no longer sell their property. They can usually not acquire loans from creditors, unless the IRS agrees to subordinate its lien. However, they can still use their property and continue to conduct business.
Prospective taxpayers may think the government has forgotten about any missing tax returns until they receive a surprise Notice of Intent to Levy. Whereas it may take years for the IRS to notice a default, the IRS may give taxpayers only days to settle their accounts. If they do not resolve their tax issue within this timeframe, the IRS can seize their assets: bank accounts, securities, real estate, wages and even business clients bank accounts.
It’s hard to think straight when you receive a Notice of Intent to Levy or a Notice of Intent to Lien. Often recipients panic and fail to act logically. However, immediate response can prevent levies or liens and give you some tax debt relief A Request for Release can lift the notice within two to ten business days, depending on the urgency. Tax Matters Solutions specializes in preparing these requests thus stopping these actions, and empowering you to resolve the tax issue. As credible taxpayer representatives they can work with the IRS to create a workable solution to give you tax debt relief.