Dealing with the IRS Notice of Intent to Levy or Lien
When you receive a “Notice of Intent to Levy or Lien” from the IRS, it signals a serious point in the tax collection process.
- Why This Notice is Issued: The IRS sends this notice as a final warning when there’s outstanding tax debt, and previous attempts at communication or collection have been unsuccessful.
- Reasons Behind Receiving the Notice: This notice typically follows several reminders or demands for payment. It indicates that the taxpayer has not fully paid their tax debt or hasn’t engaged with the IRS to address it.
- Taxpayer Rights and Responses:
- Right to Appeal: Taxpayers have the right to appeal the IRS’s decision before any levy or lien action is taken.
- Professional Assistance: Seeking professional help, like from Kick Tax Pro, can be vital in negotiating with the IRS and exploring options like payment plans or Offers in Compromise.
- Proving Financial Hardship: Demonstrating financial hardship may also prevent the enforcement of a levy or lien.
- The Right to a Collection Due Process (CDP) Hearing:
- Upon receiving this notice, taxpayers have the right to request a CDP hearing with the IRS Office of Appeals. This hearing is a critical opportunity to discuss the situation with the IRS, present your case, and explore alternatives to the levy or lien.
- During the CDP hearing, you can propose payment arrangements, challenge the appropriateness of the collection actions, and discuss options for resolving the tax debt.
- Requesting a CDP hearing can also temporarily halt the collection process, giving you time to work out a solution.
Understanding and responding promptly to a “Notice of Intent to Levy or Lien” is crucial in protecting your assets and rights. Engaging with a tax professional like Kick Tax Pro can guide you through the process, ensuring you take the right steps towards resolving your tax issues and preventing aggressive IRS actions.