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What To Do About IRS Debt

Sunday, December 8, 2013

You don’t want to mess with the Internal Revenue Service if you have extreme IRS debt since they can make your life a nightmare.  In order to get their money, the Federal law allows the IRS to (1) issue an intent to levy, which notifies the taxpayer that the IRS plans to legally freeze your bank accounts and confiscate your property and/or assets to pay off an outstanding balance or tax debt you owe to the federal government; (2) issue a levy against your bank account or other forms of income due to a missed payment, tax debt, or total you may still owe on a tax account; (3) garnish your wages; (4) freeze your bank accounts. 

To minimize your debts, you should file a federal tax return.  In the case that you do not, the IRS will provide a substitute tax return for you. This means that the government will not take any deductions so your tax liability is based on your income, thus increasing your tax obligation.

Then, if a substitute return is filed and you don’t pay your taxes, the IRS can hunt you down to collect the taxes owed to them.  You may find that there was a levy issued against your bank account causing the funds to be frozen.  When this happens, you will not have any access to you money in your account. Additionally, by law, your financial institution will transmit the amount you owe to the IRS directly. 

If that payment is not enough to pay the IRS, then your wages could be garnished.  By law, the IRS has to notify you of this action and there is a 45 day waiting period. The IRS most likely garnishes a large percentage of your wages, while leaving a small amount to survive on.

A qualified tax attorney could help get the tax penalties waived or reduced for various reasons. If you need a reliable tax attorney or assistance with IRS debt or any other IRS-related tax issue, contact the Strategic Tax Lawyers, LLP to consult with an experienced tax attorney for a free consultation. Call us at (800) 669-4775.