Opening the mailbox and finding a letter from the IRS is frightening, but what happens next can be even scarier. The IRS wields incredible power, and if they claim you owe additional taxes, they have many different options for forcing you to pay.
When the IRS claims you owe additional money, they will act quickly, and that could leave you reeling and trying hard to preserve the money you need to pay your bills, feed your family and keep a roof over your head. If you are employed, the IRS can reach into your paycheck, forcing the company you work for to withhold part of what you are owed – garnish your wages – until the tax debt has been paid in full.
The IRS can also hold onto any refunds and government payments you would otherwise be due. If you have been waiting for that big fat refund check to arrive, you are going to be out of luck if you owe money to the IRS.
As if all this were not frightening enough, the IRS also has the power to levy your bank accounts, including the funds you need to run your business and your life. Those bank account freezes and taking your money could leave you without the cash you need, putting you in a real bind. It’s shocking to wake up and find that the IRS has cleaned out your bank account. It’s an emergency. How do you pay your rent or mortgage, buy groceries and keep your utilities turned on?
Your home could even be at risk if you owe money to the IRS. The IRS frequently files tax liens that attach not only to your home but any other real estate or personal property you own. In some instances, the IRS has sold taxpayers’ homes. The threat of this kind of action has compelled many taxpayers to cough up the money the IRS says they owe, even if they think the IRS is wrong.
As you can see, the IRS has wide latitude and plenty of power. If you disagree with the amount the IRS says you owe, or if you simply do not have the money to pay the bill, you need to act fast. Ignoring the problem will only make it worse. You cannot simply pretend that you never pulled that fateful envelope out of your home mailbox.
The tax code and IRS regulations are complex and have far more pages than the Bible. Many of those IRS code provisions and regulations are difficult to understand and mind-numbing for the ordinary taxpayer. With IRS problems, you cannot afford to leave anything to chance. You need professional help to fight back.
When fighting the IRS, you need the help of a professional, and that is where a tax attorney comes into play. You can fight back on an even playing ground by working with a professional.
Our law firm focuses on tax resolution and helping people who owe the IRS or state $10,000 or more. We’ve seen taxpayers get blindsided every year by a huge tax bill and often fall behind on their taxes for years on end. If that’s you, we can help. Contact our law firm today to discuss solutions for dealing with your tax debt.