How The Notification Process Works
1st Notice - Reminder Letter
This is the first notice given to individuals and businesses with a tax debt and sets the stage for the collections process. It’s nothing more than a statement of what’s owed for specific years, and depending on the amount of tax debt and years owed, you may receive more than one. They do not come certified mail, so sometimes these notices are lost in transit and are never delivered. Regardless, if you receive a reminder notice stating you have a tax debt, it is very important to save the notice and contact one of our tax relief specialists.
2nd Notice - Urgent Notice of Intent to Levy
If you’ve received a reminder notice and failed to reply or hire counsel, the IRS will then issue an intent to levy on certain assets. These assets include wages, accounts payable, bank accounts, investment accounts and properties. For the most part, these letters are delivered certified mail and allow thirty days for either the individual or business to respond. If you’ve received an intent to levy notice, it is even more important to get professional help to intercede. If the IRS is not contacted and the tax debt not addressed, income and assets are at tremendous risk of seizure.
3rd Notice - Final Notice of Intent to Levy
This is the last notice a taxpayer or business will receive before assets are seized to satisfy the tax debt. The notice is sent certified mail and the individual or business has only ten days to respond. If no action is taken, assets will be seized. Wages, bank accounts, equipment, investments, properties, even accounts payable by vendors can be seized. This is the last chance a taxpayer or business is given to cooperate.
4th Notice Wage Garnishment / Asset Levy
If you have failed to respond to any of the previously mentioned notices, the last collection effort by the IRS will be enforcement of levy. This means that your employer must remit up to 75% of your income directly to the IRS in the form of a wage garnishment, and your bank accounts can be emptied overnight to satisfy the tax obligation. Levies on businesses can be especially crippling, as cash flow to keep the business operational can be compromised, and accounts payable will be sent notices demanding payment of all outstanding invoices directly to the IRS.
Whats the next step?
The first step towards successful resolution is to acknowledge that your tax debt and IRS collection notices won’t go away on their own and to seek professional assistance. Our firm of tax professionals has helped thousands of individuals and businesses just like you stop forced collections and finally resolve their tax debt.