Do you have significant tax debt and wish you could hit the reset button to escape the nightmare? A free consultation with an expert tax consultant at US Tax Shield can get you on the road to tax debt relief.The IRS will begin sending automatic notifications when they determine that you owe money to the government. A taxpayer typically has about four to six months to pay the debt or obtain tax debt relief before the IRS takes collection action (the actual time will depend on the amount and type of tax owed). If you need more time to pay, it is vital to file an extension request. If you are not responsive, the IRS will take action to collect. When you do not respond to the initial letter notifying you of your tax debt (or seek tax debt relief from a professional) within five weeks, the IRS will then send out a series of “CP Letters.” The first, CP 501, indicates the initial assessment of the amount due, plus interest charges and penalties. This is a simple, non-threatening reminder. The second of the CP letters, CP 502, is more demanding that you pay the amount due, including the additional penalties and interest. Next, CP 503 demands payment of the total amount due within 10 days. The fourth letter, CP 504, is the most serious and threatening of these letters. It notifies you that failure to pay the amount due, including penalties and interest, will result in seizure of your assets.If you do not respond, or have a tax debt relief professional contact the IRS on your behalf, Letter 1058 – Notice of Intent to Levy will be sent to you by certified mail. You will then have thirty days to pay or to elect a Collection Due Process Hearing. Otherwise without further notice, the IRS will seize your wages, bank account balances and other assets to satisfy the debt. They will also begin searching for additional assets you may have on which to issue a levy or file a federal tax lien.It is important to respond to initial IRS notices and to get help to obtain tax debt relief as soon as possible. Do not wait for interest and penalties to keep adding up and for your assets to be seized. Several strategies are available to deal with the IRS and get tax debt relief depending on your individual situation and circumstances, such as an Offer in Compromise, Innocent Spouse Relief, or an Installment Agreement. Another option is Currently Not Collectible Status, which is granted by the IRS to taxpayers that are unable to pay. If you qualify, the IRS will temporarily stop collection procedures. (However, penalties and interest will continue to accrue during this time.) You will be required to submit an updated financial statement every year to see if your financial situation has improved enough for collection to resume. If you’ve received notice of payment due from the IRS, our skilled and knowledgeable team can provide the help you need to get tax debt relief. Call US Tax Shield today for a free tax analysis and consultation and get IRS help.
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