Ending up with unmanageable federal tax debt issues can be a scary experience. The IRS typically imposes harsh tax penalties and hefty interests on seriously delinquent tax debt. Common IRS penalties include levying of wages, placement of liens on property, confiscation of assets, and revocation of passports among many others.
If any of the following apply to your tax debt situation, you have probably reached a point where seeking tax debt help from tax resolution experts, like Wiztax, is your best option to solve your tax issues.
You’ve Received Multiple IRS Notices in the Mail for Back Taxes Owed
If you have received several tax balance due notices from the IRS reminding you about your tax debt, it is time to reach out for tax debt help. Typically, the IRS sends 4 to 5 notices about five weeks apart that let you know they are about to levy. The following are the IRS collection letters mailed to delinquent taxpayers:
- IRS CP14 Notice: Initial notice of unpaid taxes
- IRS CP501 Notice: 1st reminder of unpaid taxes
- IRS CP503 Notice: 2nd reminder of unpaid taxes
- IRS CP504 Notice: Initial notice of intent to levy
- IRS LT 11 Notice or Letter 1058: Final notice of intent to levy and notice of your right to a hearing
The first three notices are typically sent by regular mail, while the last two are by sent by certified mail. Only the final IRS notice or letter (LT 11 or 1058) gives the IRS the legal right to levy.
The Sum of Your Tax Debt is Much More than You Can Afford
If you have back taxes that you can afford to pay, it is best to make a tax payment as soon as possible to limit penalties and interest. However, if your tax owed, including penalties and interest, is more than your available funds, it is best to consult tax resolution experts who can help you resolve your tax issues.
Remember, the IRS can impose a tax levy to recover tax debt, which means that the agency can forcefully take your property to satisfy an outstanding tax balance due. Also, the IRS can take your tax refund and levy your wages to settle your tax debt. If you have received IRS notices indicating an intent to levy your paycheck or seize your property, it is best to seek tax debt help from tax resolution experts to solve your tax issue before it becomes a burden.
Your Passport Has Been Revoked or Your Passport Application Has Been Denied
If you are a seriously delinquent taxpayer, the IRS can deny, limit or revoke your passport, which will likely put your travel plans in serious jeopardy until you have worked out an acceptable agreement with the IRS to pay off your tax debts. If your passport is at risk of being revoked, or if your application has been denied due to a back tax issue, it is time to consult tax resolution experts for tax debt help.
IRS Has Sent Private Debt Collectors
The IRS can also send private tax debt collectors to go after a delinquent taxpayer. Tax collectors are typically a pain in the neck and can target you with a series of phone calls and messages about your outstanding tax debts. If your case has been assigned to a private debt collection agency, it is time to seek tax debt help from tax resolution experts.
How Can I Settle My Tax Debt?
The IRS offers multiple payment options for taxpayers to pay off tax debts. These tax relief options include:
- Payment Plans (Installment agreements): You can ask for a short-term payment plan for up to 120 days. There’s no fee to apply for a short-term monthly payment plan. Alternatively, you can opt for an installment agreement (long-term monthly payment plan). The IRS offers 72-month and 84-month installment agreements.
- Offer in Compromise (OIC): An OIC is an offer you submit to the IRS to settle your tax debt for less than the total amount owed if paying the full tax amount creates financial hardship.
- Hardship Status: You can also request “Currently Not Collectible (CNC),” which exempts you from making immediate tax payments. CNC temporarily stops the IRS from levying your income and assets until your financial situation improves.
How Can Wiztax Help?
If you’re unable to pay off your full tax debt, Wiztax will help you solve your tax issue. Call us today at (866) 568-4593 to learn more, or start here.
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