What do you do after you receive your first collection notice from the IRS?
Sit down, take a deep breath and call a tax professional. My practice handles collections cases all the time and I can help you.
It helps to know how the IRS Collection Process works. Here’s a brief overview:
- Once a tax return is filed and processed by the IRS, the tax is assessed
- Then a collection letter is sent asking for payment
- If payment is not received right away a “silent lien” is issued and the collection letters become more aggressive
- If you owe more than $10,000 and still haven’t paid, the IRS will file a “Notice of Federal Tax Lien” which destroys your credit rating
- If you continue to ignore them, then they begin “levying” your assets. A levy is an actual “taking”, like cleaning out your bank account or having your employer garnish your wages
How do you make this nightmare go away?
In three words; compliance, communication and resolution.
- Compliance means getting current on filing your tax returns.
- Communication means reaching out to the IRS to let them know you want to clean this up. As an Enrolled Agent (EA) I am admitted to practice before the IRS on behalf of clients on all tax matters.
- Resolution means getting on a workable installment payment plan to pay off your balance due.
If you have any questions, or need help, call me at 203-434-5626 or email me at firstname.lastname@example.org.