Colorado Springs: How to Avoid a Levy When the IRS Final Notice Letter 11 Shows Up

 

Receiving an IRS Final Notice Letter 11 can be a daunting experience, as it indicates the IRS's intent to levy your property to satisfy unpaid tax debts. However, there are steps you can take to avoid this outcome.

First, it's crucial to act quickly. The letter serves as a 30-day warning, so time is of the essence. Begin by thoroughly reading the notice to understand the specifics of your situation, including the amount owed and any discrepancies.

Next, reach out to a tax professional, such as an Enrolled Agent. Many of these experts specialize in tax resolution and can communicate with the IRS on your behalf, potentially negotiating a more favorable outcome. They understand the complexities of tax law and can help you navigate the process effectively.

Additionally, ensure all your tax returns are filed, as unfiled returns can complicate negotiations. Gather all relevant documentation to support your case, such as proof of income and expenses.

By taking prompt and informed action, you can avoid a levy and work towards resolving your tax issues with the IRS.

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

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

Colorado Springs: Does Your Tax Professional Have the Right Ingredients?

 

I was waiting for my pizza out back of The Next Us Building. I was able to get what I wanted on my pizza. I thought "Do taxpayers get their tax professional with right ingredients to resolve their tax issues?" Does your tax professional make you feel valued and confident? As you personally work with Marcelino Dodge, EA you will feel confident that your tax issues will be successfully resolved so you can sleep well each and every night.

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

Colorado Springs: Do Your Taxes Feel Like a Bunch of Mondays Hitting You All at Once?

 

Do you dread the Monday morning after a fantastic weekend? Maybe that is how you feel about unfiled tax returns or a large tax bill. Do you feel nervous and exposed over having to deal with the IRS by yourself? Let us help to eliminate the overwhelming stress and worry of being harassed by the IRS, so you will not have to worry about the your money being clawed back by the IRS.

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

Colorado Springs: What is an IRS Lien Notice? Is a Notice Even Required?

 

 When a taxpayer fails to pay their tax debt, the IRS may place a lien on their property, which serves as a legal claim against the taxpayer's assets. This lien ensures that the government can secure the payment of the tax debt. Section 6320 of the Internal Revenue Code deals with the IRS's issuance of lien notices, a critical aspect of tax enforcement.

Upon filing a lien, the IRS is required to notify the taxpayer through a Section 6320 notice, commonly known as a Notice of Federal Tax Lien (NFTL). This notice is crucial as it informs the taxpayer of the lien's existence and their right to a hearing. The hearing, known as a Collection Due Process (CDP) hearing, provides the taxpayer an opportunity to dispute the lien or propose alternative payment arrangements, such as an installment agreement or an offer in compromise.

Receiving a Section 6320 notice can be daunting, but it is essential for taxpayers to understand their rights and options. Ignoring the notice can lead to severe consequences, including the potential loss of property. Therefore, taxpayers should promptly respond to the notice, either by paying the debt in full or by requesting a CDP hearing to explore other resolutions.

Engaging with a tax professional, such as an enrolled agent can be beneficial in navigating the complexities of IRS lien notices. They can provide guidance on the best course of action and help protect the taxpayer's rights. Understanding Section 6320 and taking timely action can mitigate the impact of a federal tax lien and lead to a more favorable resolution of tax debts.

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

Colorado Springs: Can a $400,000 IRS Payment Request Really be Reduced to $0?

 

There is nothing that will shock you and make you feel helpless as receiving a notice from the IRS that says something like "you failed to file your tax return so we filed a tax return for you and by the way, you now owe us $400,000 in taxes, penalties and interest." How and why does a taxpayer even receive such a notice?

There are several reasons why a taxpayer could receive such notice.  First is that they have not filed a tax return for one or more years.  The Internal Revenue Service (IRS) received income documents (W-2's, 1099's, etc) from third parties indicating that income was paid to the taxpayer.  When the IRS went looking for a tax return to match the income documents, there was no tax return on record.  There can be any number of reasons why a tax return was not filed.  The reason is not important to the IRS.  The IRS is just looking for a tax return.  When the tax return is not filed the IRS has the statutory authority to file a substitute tax return on behalf of the taxpayer with the information they have.  That is happened with the client who received a $400,000 tax bill from the IRS and a $35,000 tax bill from the state.

How did we get this $400,000 tax bill reduced to $0?  After meeting with the taxpayer, we decided on a course of action that would help the taxpayer to reduce the debt.  At the time I did not know for sure how much of the tax debt we could reduce.  After implementing the agreed upon solution, we very pleased when we received letters stating that the federal tax is reduced to $0 and the state tax is reduced to $0.  This is a case where the taxpayer qualified to have the tax debt reduced.  I cannot guaranteed this result for every client.  What I can guarantee is that we will work very hard so your feelings of worthlessness and overwhelming worry will instead become confidence and thankfulness that the dark cloud the of the IRS taking your hard earned is gone.

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

Colorado Springs: Is There Really an IRS Fresh Start Initiative?

 

No, there is no active IRS Fresh Start Initiative.  If you visit www.irs.gov and type in "Fresh Start Initiative" there is no reference to an existing program.  Back in 2011 changes were made to  help taxpayers who are struggling to pay their tax debts.  The changes aimed to make it easier for individuals and small businesses to pay back taxes and avoid tax liens. There were several key benefits and changes to existing IRS policies to provide relief to taxpayers.

One of the main policy changes increased the threshold for filing a tax lien. Previously, the IRS would file a lien if a taxpayer owed $5,000 or more, but under the revised policies this threshold was increased to $10,000. This change helps protect taxpayers' credit scores and provides more time to pay off debts without the added pressure of a lien.

These policy updates expanded the Offer in Compromise (OIC) program, which allows taxpayers to settle their tax debt for less than the full amount owed. The IRS now considers a broader range of financial hardships when evaluating OIC applications, making it more accessible to those in financial distress.  There are still financial thresholds and standards that taxpayers have to meet to qualify for an OIC.

Additionally, more flexible installment agreements were introduces. Taxpayers who owe up to $50,000 can now qualify for streamlined installment agreements, allowing them to pay their debt over six years without providing extensive financial documentation.  Although, it may be advantageous to apply for a lower payment.  

Overall, when you hear advertisements for the "IRS Fresh Start Initiative" know that the actual program ended in 2012 and search for a tax professional who will help you to eliminate the stress and overwhelming fear of dealing with the IRS.  Then you will sleep better at night knowing that you can feel successful and thankful that you have completely met all your tax obligations.

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

Colorado Springs: How shady is your tax representation?

 

Are you in the know or are you kept in the dark on you tax case? Are you feeling nervous and excluded from the process of fixing your tax issues? Learn how you can be joyful and hopeful about your tax case.

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

Colorado Springs: Overwhelmed and Stressed About Dealing With IRS?

 

Stressed about dealing with the IRS. Eliminate pain and anxiety with the services of an Enrolled Agent.

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

Colorado Springs: Feel Like You Are in Valley With Your Overdue and Unfiled Tax Returns?

 

Want to get out of the deep valley of dealing with the IRS?

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