Taxes can be challenging, and no one can have a “one size fits all” approach. The secret is to move quickly. Sanctions and fees will be the only outcome if you don’t pay your tax bill. The IRS may use further tactics, such as garnishing your salary or putting a lien on your property if you wait too long to pay.
To deal with all tax reforms and regime changes and know which tax relief option is best for you, consult with tax relief services specialists. Discussed below are some IRS notices one should know.
Notice of Intent to Assess
The notice of intent to assess is the IRS’s most common collection notice. The IRS may send it by mail or via, email or fax. If you receive this notice, the IRS has sent you a bill or a letter indicating that they intend to assess your unpaid taxes. You should also expect future correspondence from the agency; once they’ve filed their initial paperwork with the court after filing an original complaint against you, they’ll send out additional letters with more information about what happened and how much money you owe now.
The Garnishment Notice tells the debtor that the creditor will take money from their wages if they do not pay the debt. The IRS sends this notice to both their employer and bank.
The garnishment notice can also be sent by certified mail, which means it will be delivered with a certificate of delivery showing when and where it was provided and who signed for it (the sender). When you receive this type of letter, sign for it so that your employer knows you received it!
The 500 Series IRS Notices
These are the letters that the IRS sends as it steps up its collection efforts. First up is CP501. This notification resembles the CP14 quite a bit. The twenty-one-day monthly payment (again, ten days if the sum is over $100,000) and much of the penalty and payment details are the same. However, the results of not responding to this letter are very different.
LETTER 1058 (AND CP90 AND LT 11)
Those who owe back taxes will receive a letter from the IRS. It will also send a notice of intent to assess if the IRS believes that you have filed a fraudulent return or if there is probable cause that your tax liability exceeds specific amounts (generally $50 million).
If the IRS determines that additional tax is owed, it may issue one of two types of notices: LETTER 1058 (and CP90 & LT 11) – This type involves no civil penalties but does require payment within 30 days from receipt by mail. Moreover, this notice has many clauses which tax relief services providers can understand.
The taxpayer is informed in Letter 3172 that the IRS has publicly filed a Federal Tax Lien. All personal property the taxpayer currently owns or will later acquire is subject to this lien. This lien can damage a person’s credit, make it difficult to get loans and hinder them from transferring clear title to their property.
The IRS is a government agency that collects tax revenue and is not your friend. The IRS will always be there to manage your money, and they do so in various ways. They may send you a letter or email or visit your home and make an appointment to see you in person at your convenience.
The IRS is also a tax collector—they are there to gather information about how much money you owe them based on their records of income taxes. If so much information leaves you confused, hire a tax relief specialist to guide you through the process!