You’ve filed your tax return with a balance due and are unable to pay and are unsure what you should do next. Well, within a short period of time after receiving your return, the IRS will begin its automated collection process. Here’s how it works.
The IRS has the authority to enter into payment plans with taxpayers who owe back taxes. In a effort to streamline the processing of these agreements the IRS continues to test expanded criteria for taxpayers requesting installment agreements.
A CP2000 Notice is typically generated when the IRS computers determine a mismatch of income or deductions between information you reported on your tax return and information documents it receives from third parties.
When you file a tax return and fail to pay the balance due the IRS will begin sending you a series of collection notices or letters.
IRS Collection Financial Standards Are Used By Boynton Beach and Boca Raton Taxpayers in Tax Settlements
When a taxpayer seeks to reach a tax settlement with the IRS they may be required to consider the national and local collection financial standards when calculating the amount they are expected to pay.
In our previous blog we provided recently published data regarding the number of tax audits conducted by the IRS. The 2012 Internal Revenue Service Data Book also includes various statistics related to IRS collection activities, assessment of penalties, abatement of penalties and offer in compromises.
In today’s economic times many people are finding it difficult to make ends meet and don’t need the additional stress of the IRS attempting to collect back taxes. Many taxpayers with unpaid taxes are unaware that their situation may qualify for hardship status.
You may appeal many IRS collection activities to the IRS Office of Appeals. The Office of Appeals is separate from and independent of the IRS Collection office that initiated the collection action. The two main procedures are Collection Due Process (CDP) and Collection Appeals Program (CAP). The focus of this discussion is on CAP.