Taxes are quite a problem and a burden. Government and collecting authorities have already informed every taxpayer that tax avoidance or nonpayment is subject to penalties. This must not be taken lightly for they are empowered to enforce such rule and you will certainly be punished.
Each year, IRS sends millions of letters and notices to taxpayers for various reasons. There are many different types of notices issued by the IRS such as IRS Notice for late filing or IRS notice for overdue payments.
When taxpayers evade their legal obligations, Internal Revenue Service (IRS) will take a step to demand payment or fulfillment of your obligations. IRS will send you a demand letter with a deadline, threatening to levy your bank account or threatening to seize assets. Ignoring an IRS threatening letter is absolutely the worst thing to do. Receiving these kinds of letters are scary especially when you actually owe to IRS. These letters are actually serious and some of it are scare tactics to compel taxpayers to pay.
Here are some IRS guidelines on what to do if you received a letter:
1. Read the notice. If the notice is telling you that they intend to issue a levy against your state tax refund because you still have a balance due on one of your tax accounts. You must pay this amount immediately to avoid this. IRS will begin searching for other assets on which to issue a levy or file a Federal Tax Lien if they are not already done.
2. The fastest way to stop IRS is you need to pay the whole amount of your tax debt. Then mail your payment in the envelope which was sent to you and include the bottom part of the notice so IRS can correctly credit your account. If you can't pay the whole amount now, give them a call on the number printed at the top of the notice and ask if you can qualify for an installment agreement.
3. Your balance must be paid on the due date shown on your notice. If you fail to pay the amount due or contact IRS, they may seize (levy) any state tax refund to which you're entitled. This is your notice of intent to levy as required by Internal Revenue Code section 6331(d).
4. If you still have an outstanding balance after the seizure (levy) your state tax refund, they will send you a notice giving you a right to a hearing before the IRS Office of Appeals, if you have not already received such a notice. IRS may then seize or take possession of your other property or your rights to properties such as:
IRS can take everything you own or leave you with very little.
5. If you ignore the notice – did not pay the amount due or call to make payment arrangements, IRS can file a Notice of Federal Tax Lien on your property at any time. If the property is subject to a tax lien, it is now difficult to sell or borrow against your property. Your credit rating will be affected also as the tax lien appears on your credit report and your creditors would also be publicly notified that the IRS has priority to seize your property.
6. You may have some questions about the notice, you can call IRS at the number printed at the top of the notice. A customer service representative will assist you and they are usually willing to work with people.
7. If you do not agree with the information on the Final Notice of Intent to Levy and Notice of Your Right to a Hearing, you can file an appeal. You need to contact the IRS immediately at the number printed at the top of the notice. They will help you arrange and correct. Remember, you only have 30 days before the IRS takes action.
8. Sometimes IRS makes mistakes. If you have already paid the tax liability or arranged to pay it with an installment agreement, you still need to call them at the number printed at the top of the notice to make sure your account reflects that or start an appeal process.
If you take it in a lightweight approach or allow IRS to take action before you do, unnecessary burden or difficulty will be the result. IRS has vested with such powers when it comes to collecting taxes.
