| In order to know what you should do next, you need | | | | This is where your hardship comes into play. Along |
| to realize how you got here in the first place. The IRS | | | | with your financial worksheet, called a 433, you can |
| first mails you a notice and demand for payment once | | | | submit for a hardship plan. You may choose to also |
| they have determined that you owe taxes. Some | | | | negotiate an abatement of your penalties and interest. |
| people never respond or perhaps just put it aside and | | | | There are numerous payment plans available with |
| forget about it. Nevertheless, if they do not receive a | | | | regards to receiving tax relief. Receiving an IRS Notice |
| payment from you, then they send you what is called | | | | of Levy is not the end of the world, but not doing |
| a Final Notice of Intent to Levy and Notice of Your | | | | anything about it can be. |
| Right to a Hearing thirty days before the levy. This can | | | | Of course if you owe more than $10,000, you may not |
| be given in person at your home, at your business, or | | | | qualify for an installment agreement or other plans or |
| by mail. | | | | you may simply not be able to afford the payments. |
| But let's dig a little deeper about why you got here. | | | | Again, this is where reducing the debt is key. Due to |
| Yes it matters, because if you had a hardship that | | | | the IRS bureaucracy and never ending paperwork and |
| caused you to get behind on your taxes, the IRS will | | | | negotiations, you may choose to have a tax |
| include that in their negotiations. Did you go through | | | | representation firm do all the work for you. Do keep in |
| difficult financial times that caused you to owe back | | | | mind that if you have years of un-filed taxes, then |
| taxes? If so, what caused it? Did you lose your job...Did | | | | those will need to be filed prior to negotiating an IRS |
| you go through a divorce? Medical problems? Once | | | | debt settlement program. If you owe a substantial |
| you have determined why you got behind on your | | | | amount and need experts to represent you, make |
| taxes, write everything down. Then write down your | | | | sure that they have an in house CPA to prepare your |
| budget so that you can figure out what your monthly | | | | taxes. |
| expenses are and what you can afford to pay. If | | | | The basic eleven steps in resolving your IRS Notice of |
| you're starting to think that getting tax relief is a pain, | | | | Levy are the following:a) Take action. Don't just sit |
| then you're right. Heck, we haven't even started. | | | | around hoping that it all goes away, because it won't.b) |
| Now do keep in mind that you can request a Collection | | | | Determine whether there are grounds for appeal.c) |
| Due Process hearing with the Office of Appeals. | | | | Write your hardship reasons for tax relief.d) Educate |
| However you'll need to file your request within thirty | | | | yourself on Tax Law.e) Write down your budget and |
| days of the date on your notice. For example, if you | | | | complete a 433 (A or B).f) Research various IRS debt |
| already paid your IRS taxes, then that would be | | | | settlement plans, i.e. CNC, Installment Agreements, |
| grounds for an appeal. Or if you were protected by | | | | Offer In Compromise, Innocent Spouse, etc. to |
| bankruptcy, then again you could appeal the levy. Or if | | | | determine which you may qualify for, a combination of |
| the IRS made a procedural error when they assessed | | | | these plans.g) Prepare any un-filed tax returns.h) |
| your liability. Perhaps you have received a notice to | | | | Request a tax record to find out exactly how much |
| levy on taxes that you owed that are beyond the | | | | you have been charged in penalties and for which |
| statute of limitations. Again, that would definitely be a | | | | years.i) File for a Penalty Abatement.j) Once you have |
| reason to appeal the levy notice. There are other | | | | determined which plan you may qualify for, submit the |
| grounds for appeal, but I do want to mention one more, | | | | proper forms CORRECTLY! One mistake could |
| which is that you would like to discuss collection | | | | disqualify you. This is especially true of an Offer In |
| options. This is important! | | | | Compromise.k) Contact the IRS to find out which |
| If you owe less than $10,000 in IRS back taxes, you | | | | Agent is in charge of your file. Keep calling and calling |
| have the option to enter into an installment agreement. | | | | until you get the decision maker. Keep them abreast of |
| Granted that could make it difficult to pay all your other | | | | what you are doing and negotiate with them all the |
| bills, but you do have that option nonetheless. Ideally | | | | while to resolve your back taxes. (This should be done |
| however, what you want to do is settle your IRS debt. | | | | from the start until the end. |