The first step in dealing with a tax debt is to understand the entire process. By understanding what to expect, you will be able to negotiate a settlement that will be in your best interest. You should also be aware of your options, including bankruptcy and debt settlement. You also need to hire a Bethesda Tax Debt attorney to help you with the process. The IRS has several different payment methods, but you should know that there are some that are not right for you. For example, bankruptcy is an option you should explore if you have a high level of debt.
Once the IRS has notified you of your debt, it can begin the collection process. There are several options for the collection of a tax debt, including wage garnishment, bank levy, property seizure, and tax refund offset. In some cases, the IRS may choose to waive some or all of the debt, but you must know that you have a limited time to take action. Once the IRS has contacted you, they can begin their collection efforts.
After notifying you that your tax debt is past due, they can start collection efforts. They have several options for collection, including bank levy, wage garnishment, property seizure, and tax refund offset. Usually, they will select the first option to help you pay off your tax debt. If you choose to use this method, you must be prepared for the costs of such actions, which will be far higher than any benefits of settlement.
There are three primary ways to resolve a tax debt, but it’s important to understand each one. Often, this is the only option you have, and it will depend on your circumstances. If your debt is less than $50,000, you can file an application online with the IRS without any documentation. Alternatively, you can apply in person to the IRS. If you have an installment agreement, you can make lower payments over a longer period of time.
If you have a large amount of unpaid taxes, a delinquency notice is the first step. A delinquency notice is a notification that your return has not been filed. The initial bill will contain the total amount due plus a number of additional fees. If you don’t pay your tax debt in full, the Department of Revenue will charge you an administrative collection processing fee of 10%. After 90 days, your debt will be sent to a private collection agency. Depending on your financial situation, this agency may charge you a separate reemployment tax.
Once you’ve filed your tax return, the next step is to get a delinquency notice. This letter is the first step in the collection process. The letter will also contain an authentication code. Once you’ve provided the correct authentication code, the collector will be able to contact you. You should have a copy of this letter handy for when you have to speak with a collection agency. If the collection agency is not a representative of the IRS, you’ll have to pay the penalty in full.