Stop IRS Collections and State Actions

You have several options for negotiating or settling tax debt with the IRS. Options to stop IRS collection actions can include Offers in Compromise, Installment Agreements, or seeking Currently Not Collectible status based on financial hardship. The IRS will consider your specific circumstances and the facts surrounding your case.

If you can’t pay your tax debt in full, you should file your return and pay as much as you can by the due date. Additionally, you may qualify for a Partial Pay Installment Agreement, Currently Not Collectible status or an Offer in Compromise. These solutions can prevent tax authorities from coming after you with levies or liens by giving you more time to pay or allowing you to settle for less than the full amount owed. A tax attorney can help determine the best approach for your situation.

The IRS will always give you advance warning of an impending collection action. Ignoring IRS collection notices can lead to serious consequences, including additional penalties, interest, and aggressive collection actions like asset seizure or passport revocation. The same holds true with state revenue departments, who have similar collection authority and will always send notices before enforcement.

You must address any correspondence from the IRS or your state revenue department about liens, levies, or wage garnishment immediately. A tax attorney can help determine the best approach for your situation.

Yes, the IRS can seize property, including homes, vehicles, wages, and other assets, to satisfy unpaid taxes. However, these actions are often a matter of last resort, and there are legal processes in place that ensure advance warning of any collection actions. You may be able to stop or appeal the action with the help of a tax attorney.

Individual state revenue departments are also capable of taking similar collection actions if you owe back taxes to the state. Likewise, state revenue departments offer relief programs such as Offers in Compromise similar to what the IRS offers.

In some cases, the IRS may agree to reduce or eliminate penalties and interest on your tax debt through Penalty Abatement programs or settlement negotiations. A tax attorney can review your case and help you request the appropriate actions if you are eligible.

The IRS acts quickly when you don’t pay taxes, but generally, they have 10 years from the date the tax was assessed to collect unpaid taxes. However, this time frame can be extended or suspended in certain situations, such as filing for bankruptcy or requesting an Offer in Compromise.

Whether by the federal government or the state, collection actions can be frightening and the actions required to resolve or prevent them can seem overwhelming. A tax attorney can advise you on the settlement options you may qualify for based on your unique situation, negotiate directly with the IRS or your state department of revenue on your behalf to prevent or stop aggressive collection actions, and ensure your rights are protected throughout the process.