Help for Tax Debt Resolution: From Unfiled Taxes to Tax Levy

Posted on January 17, 2022

Help for Tax Debt Resolution: From Unfiled Taxes to Tax Levy

The non-payment of taxes, even if it is only for a year, leads to an increased tax debt amount. Taxpayers who have not filed their returns for either one year or many years find that the IRS has discovered their non-compliance when they receive an IRS notice regarding tax debt. The notice is the beginning of collection actions the IRS will take to get the tax money owed. The collection actions can move from mild to severe. It is in the best interests of taxpayers to get help for tax debt resolution after receiving the earliest of IRS notices.

Get Help before Tax Debt Grows

A tax debt grows with time because of the monthly interest the IRS charges on the tax debt amount owed. Along with interest, the IRS also slaps penalties for having an outstanding balance. Both of these contribute to making a small amount of back taxes grow bigger over time. In many cases, a tax debt becomes so huge that taxpayers are unable to pay it back.

The IRS has ten years to collect all taxes due. They may send a notice regarding the tax debt at anytime. The later it is, the more the tax debt has grown. Instead of waiting for the IRS to send a notification about the tax debt, it is in the interest of taxpayers to pay off the tax owed sooner than later.

Tax Debt Help for Resolution of Lien

It is best to avoid a tax lien than to have to get it removed. A lien is a claim on the property of a taxpayer to secure payment of tax debt. The IRS moves to a tax lien after their notices asking for payment are ignored. The IRS may place liens on the property and/or assets of taxpayers, such as vehicles, boats, retirement accounts, etc. Furthermore, the IRS does not need a court order to place a lien.

A tax debt resolution can save taxpayers from having their assets seized by the IRS. Tax debt help assists taxpayers in paying their tax debt according to their paying ability. Even those taxpayers that cannot pay the full amount can resolve their tax debt with the help of tax resolution companies or tax professionals.

Tax Debt Help for Resolution of Levy

Under a lien, the IRS lays claim to the property/assets of taxpayers. Under a levy, the IRS gets the additional power to sell the property/assets. The IRS also does not need the permission of a court to carry out the sale.

Before placing a levy, the IRS sends Notice CP 90 – Final Notice of Intent to Levy and Notice of Your Right to a Hearing. After sending the notice, the IRS does not initiate communication with taxpayers again. To stop a levy, taxpayers will need to contact the IRS within 30 days and make efforts to resolve their tax debt.

The resolution of a tax debt is best done before the IRS moves to a tax lien or a levy, but even if taxpayers find themselves facing liens or levies they can still use tax debt help to stop the IRS action and resolve tax debt. It helps to know that taxpayers can get their tax debt resolved regardless of their current financial situation.