Understanding the IRS collection process -the most common questions answered

Описание: https://www.irsmedic.com

The IRS is the world’s most powerful, complicated collection agency in the world. So when you have an unpaid tax problem, it’s hard to get answers that can actually help you. Hi, I’m Anthony Parent, tax attorney and founder of IRS Medic. In this video I will answer some of the most common questions people ask about the IRS collection process.

Will the IRS call me?

If you are expecting a call back yes. But if not, don’t expect anyone to call you. One reason is that if a revenue officer is assigned to your case, you will be contacted in person.

One exception is the private IRS debt collectors - they do call unannounced. The problem is there’s many people posing as the IRS, claiming they will arrest you is you don’t pay them immediately. The IRS doesn’t work like that, although it may feel as they can.

Will the IRS waive penalties and late fees?

It depends. Some penalties can be waived as a matter of right with the First Time Penalty Abatement procedures. Others can be waived if the IRS believes there was a good reason. But you have to ask for it properly.

Will the IRS forgive tax debt or settle for less?

Yes. The IRS understands you can’t get blood from a stone and will work with taxpayers to get something rather than nothing. Also, there are special hardship programs. Additionally, for taxpayers who do file their tax returns, Chapter 7 bankruptcy can sometimes completely eliminate the tax debt. Look bankruptcy is not a lot of fun, and unfortunately, that bankruptcy will show up on your credit report - so we like to work directly with the IRS, often with an offer in compromise to settle back taxes for our clients. An offer in compromise is something that does not show up on a credit report. Additionally, if a tax lien was filed, the lien will be removed once the terms of the offer in compromise are fulfilled. That’s pretty nice.

Will the IRS fix errors?

Sometimes. But it can be incredibly difficult to get the IRS to follow their own rules. This is a reason why regular normal people who’ve never had to hire a tax firm or tax attorney before often find themselves in terrible need. The IRS rules are so complicated, the IRS has a difficult time following them themselves. And consider, we even have IRS employees as clients. So what does that tell you?

Will the IRS take my house? My car? My business?

Maybe. But honestly, it is something that can be avoided. I get it, the IRS is something most of us don’t want to deal with. It can take some real courage to face facts. But you will really likely be able to find a solution you can live with. Taxpayers who take steps to make it hard for the IRS to collect from them by hiding assets, transferring to a friend, often get the worst treatment - including criminal charges. So don’t do that. The IRS is not fun, but it can be managed. And it can get a lot easier if you’re able to hire a tax firm that you like.

Will the IRS take my refund?

Often the IRS will intercept a federal or state refund for back tax payments. It is possible to get the money back if you can prove you don’t owe it, however time limitations apply so it’s best to act quickly.

Will the IRS take payments?

Yes. The key is to make sure you don’t sign up for something you can’t afford. Just don’t agree to anything to get the IRS off your back. Getting a professional opinion about what you can and should repay is key and really might be money well spent.

Can the IRS arrest you or put you in jail?

If someone calls claiming they are from the IRS and that that they are going to arrest you, that is likely a scam. If special agents with gold badges show up at your house to arrest you, that is probably real.

Can the IRS seize my 401k?

Yes. No court order is required to do so

Can the IRS garnish my wages?

Yes. No court order is required to do so.

Can the IRS freeze a bank account?

Yes. No court order is required.

Are you starting to see how powerful the IRS is?

Can the IRS take inheritance for back taxes?

Yes. That is why it is important to settle with the IRS before you come into money. The best time to negotiate with the IRS is when things are the worst for you financially. Don’t wait until you are back on your feet to make a deal, as your deal may be less than optimal.

What other questions do you have about the IRS collection process? Please leave them in the comments below. Be sure to subscribe to our channel to stay on top of IRS news you probably wish you didn’t have to. And if you are looking for a firm to help you, follow the link to irsmedic.com

This in Anthony Parent of IRS Medic, thanks for watching.



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