Top 10 Reasons NOT to Fight the IRS Alone
1. IRS Wage Garnishments and Bank Levies
Did you know that the IRS can use wage garnishments and bank levies to take your
money? The IRS can use garnishments and levies to attack your paycheck or bank account
and wipe out your hard earned income or savings. Your employer, your bank, and even
the Social Security Administration is required by federal law to comply with the
IRS. These collection activities can be especially detrimental to families living
off a fixed income.
2. Interest and Penalties
Did you know that penalties and interest begin accruing the day after you miss a
tax payment? And they will continue to accrue until the balance is paid-off in full.
These additional fees can quickly turn a small, missed payment into a huge IRS tax
liability.
3. IRS Tax Liens
Did you know that in addition to levying your income or bank account, the IRS can
even place a federal tax lien on your house? The lien can keep you from selling
your real estate or refinancing your home. The lien can also have a negative impact
on your credit and even cause problems if you are trying to find a new job.
4. Threatening Notices and Telephone Calls
Did you know that the IRS will stop at absolutely nothing to get money from you?
The IRS has a bad reputation for a reason: they relentlessly harass taxpayers. As
a result some clients our law firm has helped over the years developed serious health
problems because of their growing IRS tax debt and repeated IRS harassment.
5. IRS Revenue Officers
Did you know the IRS employs a dedicated team of elite collection officers, known
as Revenue Officers, to track down taxpayers with missing returns or unpaid taxes?
The Revenue Officers’ sole purpose is to get taxpayers into compliance and to collect
unpaid back taxes. They are devoted to tracking down taxpayers and getting money
no matter what it takes. This can result in at-home or at-work visits, levies, garnishments,
liens, and even property seizures.
6. No More Income Tax Refunds
Did you know that the IRS will keep and apply any future tax refunds against federal
back taxes you owe? Additionally, did you know that you will not be eligible to
receive the economic stimulus check because it will be used to pay any back taxes
you owe?
7. Substitute For Returns
Did you know that the IRS can file a return on your behalf if you do not file your
own return? The IRS will use the income data they collect from your employers and
financial institutions. The IRS will not claim any deductions or credits beyond
the standard deduction. Consequently, these Substitute for Returns often do not
accurately reflect the taxpayer’s financial situation and end up costing taxpayers
thousands, if not tens of thousands of dollars.
8. Private Debt Collectors
Did you know that in addition to IRS Revenue Officers, the IRS can even turn your
case over to private debt collection companies? These professional debt collectors
receive a commission based upon what they collect. They use industry techniques
that can be even more aggressive and unreasonable than dealing with the IRS directly.
9. Mandatory IRS Summons
Did you know that the IRS collection department has the ability to require that
you provide them with books, records, or testimonies from third parties about your
tax liability? They will issue a Summons at which you will need to attend and produce
the requested information or otherwise be subject to levies, liens, and garnishments
in regards to your back tax liability.
10. Unreasonable Monthly Payments
Did you know that the IRS can force you into monthly payments even if you cannot
afford them? The IRS wants every penny of the money they can get their hands on.
The IRS only considers a taxpayer’s financial situation when correct documentation
and information are provided. It is up to the taxpayer to identify these documents
and present them to the IRS to secure an affordable payment plan.