Collection of Tax Debt through IRS Notices: Back Taxes Relief

Posted on August 7, 2023

Collection of Tax Debt through IRS Notices: Back Taxes Relief

When you do not pay your taxes on time, the IRS will start collection efforts to recover the full amount of the tax debt. It’s important to remember that the IRS will always look to collect the most it can under the present circumstances, but will consider tax debt reduction or postponement of payment if the taxpayer is financially incapable of paying the full amount.

The IRS first sends notices and letter before moving on to damaging collection actions like garnishments and levies. Before beginning to resolve a tax debt situation, it is advisable to learn about both the IRS collection actions and the resolution options available so that you can achieve a smooth and successful solution.

The IRS will send multiple notices to encourage a taxpayer to pay the full amount or qualify for a payment plan to resolve the tax case. In this initial stage, the IRS does not use any aggressive methods to collect tax debt. A taxpayer must consider their best possible resolution options after receiving an IRS notice.

If the IRS notices remain unanswered and no satisfactory efforts for tax debt resolution are made, the IRS then moves to more aggressive collection efforts, from assigning a revenue officer to the case or using a levy on your bank account, which are not only damaging, but can also complicate a tax debt.  Ultimately, it is best to seek back taxes relief as early as possible.

 

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