Dealing with IRS Collections Methods
The very first phase of the IRS collections process begins when you file your tax return without putting in the amount due yet. It will be the IRS who identifies your amount due, which will be shown in the bill that they will initially send you. This first bill will merely bear the explanations behind your tax due and the need for you to make a full payment. If you do not pay attention to this notice, another one will be sent to you referencing the dates of coverage and amount due as well as any applicable penalties. Continuing to ignore what the IRS sends you would result to the receipt of notices that are more threatening in nature. These notices, on the other hand, follow a specific format and are sent in a particular order. Looking them up from the IRS will provide you more information and help you understand what each notice means. The bottomline is, if you receive these letters, you clearly have issues with the IRS that need to be settled immediately Should you find some errors in the computation of your taxes, you simply need to send the IRS a letter or make a phone call to request for a meeting with them. They are always open for a discussion that will eventually lead to making the needed adjustments in your taxes should it be found out that there were indeed errors in the computation. If you already settled your bill yet still continue to get IRS notices, you can just send them your proof of payment. Just ensure that you don’t send any original documents so will always have support data on your IRS payments. In the case where you feel you can’t afford to pay for the full amount of your taxes, certain payment options are available. You may request for an arrangement of an installment payment plan. This payment plan has three implications: you pay for your taxes over a longer period, you incur the applicable fees for the unpaid balance and you are penalized until you have completely settled your dues. Alternatives are also available in cases when you really can’t afford to partially pay for your taxes. You may request the IRS to put off their collection attempts for a certain period – this is when you will be classified as currently not collective. The negative part of this option though is you still incur interests that will most likely accumulate, ultimately making your IRS problems compound. Offer in Compromise, or most commonly known as OIC, is one of the options that IRS offers to those who have problems paying their taxes. In this arrangement, you will only be required to pay a certain amount of your total dues, and the remaining portion is forgiven. Although you will be required to go through a more stringent process, applying for this option is worth the risk. OIC is effective in easing your IRS problems, at least until the next year. In reality, there are several options available to help you deal with IRS concerns. Some of them are as simple as picking up the phone to call the nearest IRS office while others are more complex, requiring you to consult a tax professional. These alternatives are all in the premise that even though you are indebted to the government, you are still entitled to a fair and just treatment. Just remember to be prudent in responding to IRS notices to avoid having more serious collection procedures enforced upon you.
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