During the months of September, October and November, the IRS will contact those who have not paid their tax bills. If you owe money on your taxes, the IRS will contact you in order to resolve these issues regarding payment. If you have fallen into financial disarray, there are some things that you need to know. You need to make sure that you are complicit with the IRS.
Who are the IRS?
The IRS is the Internal Revenue Service. They are a service that works for the Federal Government of the USA. They are the powers that be when it comes to matters of taxation. In short, all matters of taxation are dealt with by the IRS.
What Happens If I Cannot Pay My Taxes?
You will be contacted by the IRS in the event that you have not paid your taxes in full. If you cannot pay, or have not paid, the IRS can issue a levy. This levy ensures that your taxes are repaid.
The IRS issues levies so that any sum that is owed can be repaid. The IRS may issue a levy in different ways. But, they must follow a protocol before they issue a levy. This means that you are given the opportunity to repay the money before a levy is enforced.
There is a three stage process that is adhered to:
Notice of payment: this will inform you of the sum that is owed and when you should pay it by
Notice of intent to levy: if you do not pay by the outlined sum in the original notice, you will be issued with intent to levy. This means that you get a further opportunity to pay your taxes
Notice of the right to a Collection Due Process hearing: if you cannot pay, you will be entitled to a hearing so that you can state your case.
For many, levies are not issued as they pay with immediate effect. However, if you are in a financial situation where you cannot pay a levy can be issued.
The levy enables the IRS to seize your assets. Your income and property can be seized by the IRS as a form of payment towards your tax bills. IRS tax levy garnishment means that a part of your income can be taken. In some circumstances, your entire assets can be taken. It is critical that you pay your taxes.
Financial Hardship: Paying the IRS
If you find yourself in financial hardship, there are a number of things that you can do. You can directly contact the IRS and set up a repayment plan so that your bills are paid. This can be done over a monthly term. This will enable you to clear the existing debt.
There are also professional mediators and negotiators who will work on your behalf to get the levy released. If you are not in the position to sort out your financial affairs, these external bodies will help. They are proven to be a valuable tool in releasing your levy.