Tax collections actions give the IRS tremendous power, however that power is limited through rules and procedures. Find out how to protect your rights.
The IRS has been given tremendous power to determine what taxes you owe based on the law and information provided either through your tax return or through the research and findings of IRS auditors. Once the IRS decides how much you owe, the IRS collection department is empowered to take a variety of aggressive tax collections actions including filing a tax lien or a tax levy against you.
A tax collection is an action taken by the IRS, Franchise Tax Board (FTB), or the Employment Development Department (EDD) to collect money against a taxpayer. If one of these agencies beings a tax collection action against a taxpayer, it is because the agencies has determined that the taxpayer owes taxes.
As an experienced tax attorney, Bill Hartsock can represent you if you receive an IRS collections lien notice or notice of levy. In some cases, it may be advantageous to request a Collections Due Process Hearing if you disagree with the collection actions taken by the IRS.
The US government has given the IRS incredible power to both determine the amount of taxes you owe and to perform tax collections. The good news is that you are not powerless. In this article we will take a look at IRS levies and what you can do to defend yourself by contesting them.
The IRS recently changed its Installment Agreement conditions in order to allow more taxpayers to qualify and catch up on back taxes. They call it the “Fresh Start Installment Agreement.” Under the Fresh Start initiative, the maximum dollar criteria for streamlined installment agreements has been raised from $25,000 to $50,000 and the maximum term to pay has been raised from 5 years to 6 years.
What the IRS has determined that a taxpayer owes a tax debt, they are entitled by the US government to begin tax collections actions. In those cases, the taxpayer has several options for resolving the Tax Collection Action with the IRS. First, the taxpayer may simply decide to pay the amount in full. When that is not a possibility, the taxpayer may attempt to settle the case with the IRS using several different avenues: Installment Agreement, Offer in Compromise, Currently Not Collectible, or a Collection Due Process Hearing.
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