A Quick Guide To IRS Help
Many people find themselves in trouble with the IRS. They experience some major tax problems. The IRS begins to take severe action. There are several solutions for IRS help. These solutions offer hope to troubled taxpayers.
Taxpayers may encounter several kind of problems with the IRS. They may have failed to file old tax returns. It may take a year or more for IRS agents to find out, but they will find out. Taxpayers may have filed their returns but failed to pay taxes owed. In any situation, it is important to seek help before the IRS begins to take action.
Some find themselves in trouble due to an unexpected audit. After an audit, they cannot pay the new amount of taxes owed. Some make 401k withdrawals and fail to take tax penalties into account. Some find themselves held accountable for tax problems of a spouse or ex-spouse.
IRS agents are notoriously ruthless about recovering taxes owed. They begin by sending letters. They set up a tax lien against property. This gives them the right to claim the property to pay a debt. A tax lien is often the first step toward collection.
The most painful step occurs when IRS agents set up tax levies. They send taxpayers a thirty-day notice. This tells them that the IRS plans to begin seizing assets. Assets may be homes, savings, investment accounts, or wages. The most common levy is wage garnishment. Another common levy is a bank levy. A
bank levy allows the IRS to take money from a taxpayer’s savings account to satisfy the debt.
Taxpayers can try several different solutions depending on their situation. The most severe problems may require a bankruptcy declaration. Chapter 7 bankruptcy will require taxpayers to give up non-exempt assets to satisfy their back taxes. Chapter 13 bankruptcy will require taxpayers to create a payment plan. No payment plan is valid without IRS approval.
Taxpayers can ask for innocent spouse relief or appeal a ruling. Both solutions are difficult without professional help. Taxpayers start by writing a letter of protest. They include documentation with the letter. They make a copy of everything. They should use the Freedom of Information Act to obtain a copy of the auditor’s file. Once all information is compiled, it is sent to the IRS
through certified mail.
Another solution is to pay the debt. It is also wise to seek professional help in this situation. A professional will file tax returns. Professionals will help taxpayers settle for less money if possible. They may also be able to abate penalties and interest. A professional can help taxpayers set up a payment system. This can be done via a lump sum or via installments. Approval for an installation plan usually takes thirty to forty-five days.
It is often wise for troubled taxpayers to seek experienced IRS help. These people can understand the different reasons why back taxes were accrued. They understand the penalties that the Internal Revenue Service may levy. They can help taxpayers to find the best solution to settle their debt once and for all.