Cash Tracks Financial Tax Resolution: Intent to levy

Monday, September 30, 2024

Colorado Springs: How Final is the IRS Final Notice of Intent to Levy

The IRS Final Notice of Intent to Levy is a critical document that signifies the agency's intention to seize a taxpayer's assets to satisfy an outstanding tax debt. However, despite its name, this notice is not entirely "final" in the sense that it leaves room for taxpayer action.

Upon receiving this notice, taxpayers are granted a 30-day window to respond before the IRS can proceed with the levy. This period is crucial as it provides an opportunity to contest the levy or arrange alternative solutions. Taxpayers can request a Collection Due Process (CDP) hearing, which allows them to present their case and explore options such as installment agreements, offers in compromise, or proving financial hardship.

Ignoring the notice can lead to severe consequences, including the seizure of bank accounts, wages, and other assets. Therefore, it is imperative to act promptly. Engaging a tax professional, such as an Enrolled Agent, will be beneficial in navigating the IRS processes and procedures.

While the IRS Final Notice of Intent to Levy is a serious indication of impending action, it is not the end of the road for taxpayers. By taking timely and informed steps, individuals can potentially halt the levy process and negotiate a more manageable resolution to their tax liabilities. This underscores the importance having an Enrolled Agent to help you understand your rights and responsibilities when dealing with IRS communications.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA, CTRC

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Wednesday, June 12, 2024

Colorado Springs: Why am I in IRS Collections?

Have you failed to pay your tax liability? The IRS will initiate a series of steps to collect the owed amount. Initially, you are sent a series of notices, starting with a CP14, which informs you of the balance due. If you do not respond or make arrangements to pay, the IRS escalates the matter by sending additional notices, such as the CP501 and CP503, which serve as reminders and warnings of potential collection actions.

If you continue to ignore these notices, the IRS may issue a CP504, which is a final notice of intent to levy and a notice of the taxpayer's right to a hearing. This notice indicates that the IRS is preparing to take more aggressive collection actions, such as garnishing wages, levying bank accounts, or seizing property.

In some cases, the IRS may assign the debt to a private collection agency. This typically happens when the IRS has exhausted its internal collection efforts. The private agency will then attempt to collect the debt on behalf of the IRS, although this approach has been criticized for its inefficiency and the undue stress it places on low-income taxpayers.

Throughout this process, it is crucial for you the taxpayer to respond promptly to IRS notices and seek professional assistance if needed to avoid severe financial repercussions.