Past Due IRS Bills

This section is for taxpayers that have not paid as requested and maybe facing action by the IRS. 

We will explain:

1. The consequences of not paying your tax debt when you have the ability to pay it

2. The benefits of working with IRS so you can resolve your tax problems rather than waiting until the IRS takes action to collect you owe

3. The benefits of working with an authorized tax professional that will represent your interests with the IRS

Consequences of not paying your tax debt

An IRS collections employee will likely contact you. An IRS collections employee’s responsibility is to contact you get answers. They want to know if you bill can be paid immediately, what your financial situation is and how that situation can be resolved. You will find that IRS collection employee’s take their job seriously. They may determine it is necessary to visit you at your home or business. The IRS collection employee will possibly request you gathering information on your income and expenses as well as your assets and liabilities. 

There are actions the law provides the IRS to assist in collecting tax debt. 

1. Federal Tax Lien

2. Tax Levy

3. A Summons

The IRS collections employee may contact 3rd parties for financial information about you and your business. This includes investigating property you currently own or previously placed in someone else’s name. If you do not cooperate with the IRS collection employee, the result maybe:

1. Garnishment of wages

2. Attaching your bank account and withdrawing funds

3. Ceasing and selling your assets and applying the sale proceeds against the amount you owe

Collection Information Statement for Wage Earners and Self-Employed Individuals is used to determine your ability to pay. Here is the most common information you will need for the completion of statement:

1. Gross Income/Deductions

2. Bank Accounts

3. Current Expenses

4. Loan Balances

5. Last Filed Income Tax Return

This process can seem overwhelming. Keep in mind that if you need assistance organizing this information or presenting it to the IRS, hiring an authorized tax professional maybe extremely beneficial. The IRS expects your financial information to be correct and does not deem their responsibility to help you organize your personal or financial information, even if it’s too your determent. 

The information and documentation you provide to the IRS is used in conjunction with collection financial standards in order to resolve your tax debt. The standards are used to help the IRS determine your ability to pay a delinquent tax liability. Your allowable expenses may be limited based upon the Collection Financial Standards. Based on the information you provide the collection employee may allow your actual living expenses instead of the standard expense.