Tax Attorney Pat Komor Will Explain Your Collection Options
If the IRS is taking steps to collect taxes from you, we can help. We understand IRS collection actions, and we will advocate tirelessly for you. Once you hire us, the IRS will contact us instead of you, and we will evaluate your options and determine if you can take steps to reduce the amount due, delay payment, file for a hearing to discuss your tax liability, or take other appropriate steps. The IRS has specific procedures it must follow as it collects from you, and if they send certain letters, prompt appropriate response within the deadline may be critical to your case. Some proposed collection actions require you to respond by a deadline to protect your rights, and these deadlines may not be flexible.
For example, if you receive a Notice of Federal Tax Lien or a Notice of Intent to Levy, you must reply in a certain manner within a certain time frame to protect your rights.
If you have received an IRS collection letter, or the IRS has contacted you about your tax bill, schedule a free consultation today to discuss your situation with our experienced IRS attorney.
An IRS levy is a legal action taken by the IRS to take your property in order to pay your tax bill. When proceeding with a levy, the IRS seizes your property and then sells the property as payment for the tax you owe. The IRS has very strong legal authority to take property to pay tax debts. For example, the IRS can take the funds in your bank account, they can require your employer to pay them a portion of your wages, and they may be able to take your physical assets (like a car or a home).
An IRS levy is very serious. Prior to taking action, the IRS will communicate with you to let you know that you owe money for unpaid taxes and request payment. They will first send a Notice and Demand for Payment, and if you do not pay them, the final notice the IRS will send you before they proceed to take your assets is a Notice of Intent to Levy. The Notice of Intent to Levy may provide you with the right to request a Collection Due Process Hearing, which would delay the seizure of your assets and give you an opportunity to provide the IRS with other collection options that they should take, instead of seizing your assets.
Further, the easiest way to prevent the IRS from seizing your property is to pay off your tax debt. However, if you cannot pay in full, there are other options that we can consider for you – payment extension, installment agreement, currently not collectible status, or an offer in compromise.
Because of the seriousness of losing your property, ignoring an IRS letter can result in serious consequences. If you have received any notice that indicates that the IRS would like payment from you, contact us today to understand your rights and options.
Notice of Intent to Levy
The IRS sends a Notice of Intent to Levy when they are intending to take your assets imminently. This notice informs you that the IRS plans to move against your assets, and if you do not take any action within the deadline, they will take your assets. For example, the IRS can take your income by filing a notice with your employer, they can take your bank accounts and they can seize any property that you own.
This can be a scary situation, but you do have rights. If you file an appropriate response within the deadline, the IRS will not be able to take your assets until you are given a hearing, during which you are permitted to provide them with other options for the collection of your tax debt.
If you would like to present the IRS with other collection alternatives, an appropriate response to the Notice of Intent to Levy must be filed within the deadline stated in the notice. The IRS cannot extend this deadline. The response should request a hearing, known as a Collection Due Process Hearing, and during that hearing, we will advocate strongly on your behalf to provide collection alternatives to the IRS.
Notice of Federal Tax Lien
The IRS sends a Notice of Federal Tax Lien when they have filed a tax lien against you. This notice informs you that there is a lien against you, which can impact your credit and your ability to sell assets that are impacted by the lien. This notice also provides you with important additional rights if you would like to oppose that lien, but if that is the case, you must act within the deadline set forth in the notice.
If you would like to present the IRS with other collection alternatives, an appropriate response to the Notice of Federal Tax Lien must be filed within the deadline stated in the notice. The IRS cannot extend this deadline. The response should request a hearing, known as a Collection Due Process Hearing, and during that hearing, we can provide collection alternatives to the IRS on your behalf.
If you would like the lien to be removed, there are several options that may be available to you. We can request removal if you set up a specific payment plan with the IRS. The IRS may also be willing to remove or subordinate its lien if you are trying to sell an asset, and the IRS is not harmed by removal or subordination.
If you have received a Notice of Federal Tax Lien, contact us for assistance in protecting your rights.
Collection Due Process Hearing
A Collection Due Process Hearing can be a very important tool for resolving your tax debt. This hearing can be requested in response to receiving an IRS notice of intent to levy, or an IRS notice of federal tax lien. The collection due process hearing is a meeting with an independent IRS Appeals Officer, who has not had prior involvement with your case. The IRS Appeals Officer will take a fresh look at your situation and will meet with you (or your representative) to try to resolve the issues.
For example, at a collection due process hearing, if the IRS was proposing to levy (take) your property, you could request that the IRS refrain from taking your property and accept a different collection alternative. Examples of different collection alternatives could be a request for an installment agreement or an innocent spouse claim. In some situations, you can also discuss whether you even owe the tax at issue.
When you request a collection due process hearing, the IRS cannot take further action to levy (take) your assets until after the hearing has happened. This creates another benefit – it gives you additional time to figure out how to resolve your liability.
When the IRS sends a Notice of Federal Tax Lien or Notice of Intent to Levy, they also enclose a notice informing you that you have a right to request what is known as a collection due process hearing, along with IRS Form 12153, which will allow you to request this hearing.
However, you will only receive one opportunity to request a collection due process (CDP) hearing for each tax year for which you have a balance due. Therefore, if you previously received a Notice of Federal Tax Lien that included a right to request a CDP hearing and then you later receive a Notice of Intent to Levy for that same tax liability, you will not have a second chance to request a CDP hearing.
If you receive a Notice of Federal Tax Lien or Notice of Intent to Levy, we are here to help – contact us to help you file your request for a collection due process hearing, and work with the IRS to help resolve your tax issues.
Komor Tax Law, LLC Can Help Fight IRS Collection Actions
We understand how daunting it can be to face the IRS without the proper guidance. Komor Tax Law is here for you. Attorney Komor is a knowledgeable and passionate tax attorney who will advocate strongly on your behalf as she works to resolve your tax issue.
Contact Komor Tax Law, LLC for help in resolving your federal tax issues today.
Information on this website is not to be considered legal advice, more detail here.