If you’re one of many hundreds of thousands of People in debt to the IRS, the specialists at Optima Tax Aid assessment what you’ll be able to anticipate from the IRS’s assortment course of
Coming off the heels of the biggest tax reform laws in over 30 years, many People could have unexpectedly discovered themselves within the undesirable place of owing cash to the IRS. And whereas it may be formidable to be in debt to the IRS, the specialists at Optima Tax Aid stroll by what the gathering course of truly appears like, and highlights what taxpayers can anticipate.
What’s the Assortment Course of Like?
The gathering course of with the IRS is initiated after you file your return. If you find yourself owing a steadiness after submitting your tax return, you’ll obtain a invoice immediately from the IRS through the US Postal Service. This invoice is to inform the taxpayer of the steadiness that’s due and that the gathering course of has begun. A taxpayer will stay in collections with the IRS till the debt is glad, or the IRS is now not legally in a position to gather that tax. Together with this invoice, the IRS will ship an in depth first discover, that features the quantity of taxes due, and itemizes any penalties or curiosity accrued.
As a result of a taxpayer’s excellent debt to the IRS is topic to compounding curiosity and late cost penalties, it’s within the taxpayer’s greatest curiosity to pay the debt as shortly as potential. If that isn’t possible, the IRS could supply an installment plan that permits the taxpayer to pay month-to-month funds till the debt is collected in full. The IRS does supply incentives for direct cost account deductions, and might cut back the charges related to these installment plans for these below sure revenue degree thresholds.
If the IRS determines that you simply aren’t able to making funds in opposition to your excellent tax debt as a consequence of a monetary hardship, they might present some reduction till your monetary hardships stop. Throughout these potential durations of non-collection, the debt isn’t eradicated – however the IRS will work with the taxpayer to evaluate when these funds should resume.
What Ought to a Taxpayer Do?
Crucial motion a taxpayer can take concerning their tax debt is to not ignore the difficulty and work immediately with a tax decision firm, like Optima Tax Aid, or with the IRS. This will keep away from extra everlasting pitfalls down the street, such a liens and/or levies positioned on property to fulfill the excellent debt. This will keep away from extra everlasting pitfalls down the street, such a liens and/or levies positioned on property to fulfill the excellent debt.