They're Baa-ack, IRS Collection and Enforcement!

After approximately 16 months in waiting, the IRS collection and enforcement actions have resumed. As a licensed professional supporting people who have tax problems, I routinely receive copies of IRS notices and letters that are sent to taxpayers represented by our firm. During the last week, our mailbox was stuffed with newly issued notices and letters from the IRS. If you receive a letter or notice from the IRS, what should you do?

OPEN YOUR MAIL

Sounds simple enough, right? Well, believe it or not, we have had initial appointments with people who have brought us many unopened envelopes they received from the IRS. The first step to resolving your tax problem is to understand what the problem is. The IRS is required to issue a series of notices and send formal correspondence throughout their collection process. Many of the IRS notices have specific timelines and due dates for your response in order to protect your rights as a taxpayer. If you neglect to open your mail, then you may be missing key deadlines and opportunities to resolve your tax problem quickly.

TAKE ACTION, DO NOT IGNORE THE NOTICE

The IRS collection process can be very intimidating for people who find themselves unable to pay their taxes. It is extremely rare that ignoring a problem will result in a positive outcome when dealing with the IRS, or other serious problems for that matter. Living life “on the lam” is not a recommended strategy to resolve your tax problem. Once you understand what the IRS believes to be the problem, you have multiple collection alternatives to consider. By ignoring your problem with the IRS, they may escalate your case and pursue more aggressive collection tactics like tax liens or levies or consider your actions criminal. Acting early in the collection process helps mitigate the accrual of additional penalties and interest while regaining peace of mind that the intimidating tax problem is being handled.

YOU ARE NOT ALONE

If you find yourself in a position where you are unable to pay the amount of tax due, please seek the assistance of professionals familiar with the IRS collection process prior to taking an action that you are not comfortable pursuing. There are timelines and specific forms required in order to protect your taxpayer rights. Understanding your options will help prepare you to work through your tax problem and move on with your life.

To get help with an IRS tax problem, or learn about tax-saving strategies for business owners, contact me at (360) 474-5892 or e-mail me at tate@ensigncpa.com.