Skilled Glendale IRS Tax Collection Lawyers Ready To Serve You
Everyone is familiar with the Internal Revenue Service (IRS), the federal agency charged with assessing and collecting taxes. Most Glendale taxpayers file their tax returns each year and go their whole lives without hearing a word from the IRS. However, if someone does not pay the full amount of tax when they file their return or the IRS determines that they owe additional tax, the IRS will begin the collection process. This process can be stressful, even for the most diligent and well-intentioned taxpayers.
The IRS collection process begins with the IRS sending a taxpayer a letter outlining the amount of tax they owe and demanding immediate payment in full. Of course, receiving an IRS collection letter catches most taxpayers off guard. You may not have the funds available to pay down the debt right away.
At Kaczmarek & Jojola PLLC, our Glendale IRS tax collection lawyers can help by going over all possible payment plans, identifying the plan that is best for you, and assisting with the application process. Collectively, we have decades of hands-on experience handling even the most complex tax matters. We look forward to helping you overcome whatever tax issues you face.
What Happens If You Ignore IRS Collection Letters?
Once the IRS sends out a letter demanding payment for back taxes, the collection process begins. Typically, the first few IRS collection letters take a conciliatory tone, explaining that you owe more taxes than you paid and requesting that you pay the amount in full. If you ignore these letters, the IRS can take various measures, none of which involve forgetting about the tax debt.
The first problem with ignoring IRS collection letters is that your outstanding tax balance will continue to grow. This is because the IRS assesses daily-compounding interest and monthly late payments from the time the tax was originally due. Thus, as long as the issue remains unaddressed, your tax balance will grow.
More concerning, however, is the collection enforcement actions the IRS can take if you do not pay the outstanding balance promptly. On the less severe end of the spectrum, the IRS can withhold future refunds that you would otherwise be entitled to. However, the IRS can—and often do—pursue more aggressive action, including placing a federal tax lien on your assets.
A federal tax lien is a publicly available document that gives the government a claim to any of your assets, including real estate, bank accounts, vehicles, and other personal property. A federal tax lien also attaches to any property you purchase in the future until the IRS removes the lien. Not only that, but a Notice of Federal Tax Lien can also affect your credit. And, even if you file for bankruptcy, it will not necessarily get rid of the lien.
The IRS can also levy your assets. While a lien represents the government’s interest in your property, a levy is a legal process in which the IRS seizes (and then sells) assets. For example, the IRS can garnish your wages, take money out of your bank or investment accounts, or physically seize your personal property and real estate.
What If I Cannot Afford to Pay My Outstanding Tax Balance?
If you recently received a letter from the IRS demanding immediate payment, you may be wondering what you can do if you don’t have money to instantly pay the debt. First, you are not alone. Many taxpayers face financial difficulties when trying to settle their outstanding tax debt. The IRS allows certain taxpayers to repay their tax debt through one of several types of payment plans. Some of these options allow you to make monthly payments for a specified period, at which point the IRS forgives the remaining balance. At Kaczmarek & Jojola PLLC, we help clients take care of their outstanding tax issues. We will first identify which repayment program best fits your situation and then work with you to carefully complete a compelling application.
Call the Glendale Tax Collection Lawyers at Kaczmarek & Jojola PLLC for Immediate Assistance
Our trusted legal team also handles other types of tax issues, including:
If you owe money to the IRS and wonder how you will settle your tax debt, contact the dedicated Glendale IRS tax collection attorneys at Kaczmarek & Jojola PLLC. Our team of knowledgeable attorneys has extensive hands-on experience helping clients get the IRS off their back. With an intimate understating of all available payment options, we can help you determine which is right for you and assist in the application process. To learn more about how we can help you resolve your tax issues, contact Kaczmarek & Jojola by phone or through our online form.