In order to avoid aggressive IRS actions, it’s important to understand how they work. In addition to sending notices regarding the payment of debt, the IRS also uses various aggressive collection actions such as the federal tax lien and tax levy to collect tax debt.
It’s beneficial for taxpayers to begin resolution efforts as soon as possible. Once a taxpayer discovers that he or she owes back taxes, they should gain an understanding of their case, seek expert help if necessary, and begin the resolution process. Apart from avoiding aggressive IRS actions, early resolution also helps to limit the penalties and interest that will need to be paid on the debt.
The IRS does not send a single letter, but multiple notices to collect tax debt. If the recipient does not respond to the notices and doesn’t make satisfactory effort to resolve the debt, then the IRS may issue a tax lien or begin aggressive collection actions like a wage garnishment or bank levy.
Issues such as procrastination, postponement, and avoidance cause taxpayers to remain non-compliant even after the IRS begins collection efforts. In order to avoid facing aggressive IRS actions, it’s important to respond to notices and explore resolution efforts.
The IRS has payment plans that can be selected according to a taxpayer’s means. Even if an individual does not have the financial ability to pay the full tax debt amount, the IRS has resolution options that don’t require the payment of the debt all at once.