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Managing Garnishment Letters From The IRS
Prior to the IRS levy they will assess the tax and send you a Notice and Demand for Payment, wait for response or payment and deliver a Final Notice of Intent to Levy and Notice of Your Right to A Hearing at least thirty days before the tax levy. The last letter can be left at your workplace, your house, given in person or sent by mail to the last known address on record, by certified mail. Speak to the IRS quickly, or work with a qualified professional to quickly get in touch with them, after receiving an IRS levy notice to prevent IRS wage garnishment action from carrying on.
If you cannot pay the tax liability, you can consider one of the tax settlement programs which the IRS has. A tax settlement is a very broad term that refers to a tax payer and the IRS entering into agreement where their tax liabilities are settled through one of the IRS programs. The primary consideration the IRS takes into account is the taxpayer's economic ability to pay the tax debt back. These are income, expenditures, equity in property and extraordinary circumstances. All tax returns must be filed before the IRS will think about a tax settlement of any type. Be sure to have any back taxes prepared and ready to send to the IRS before you start the tax settlement process.
There are two types of income tax settlements: The first is when a you are not capable of paying the debt and might possibly meet the requirements to pay much less than the full amount.
This would include:
- Offer In Compromise
- A Partial Installment Agreement
- An Abatement of penalty
If a taxpayer does not meet the requirements for a settlement, there's two additional options:
- Installment Agreement
- Uncollectible (hardship case)
I recommend choosing an experienced tax expert who'll be able to stop IRS levy actions and examine your case to look for the best tax settlement for you.