If you neglect to pay your tax debt, you could find yourself on the receiving end of a letter from the IRS. The IRS has the right to collect money owed to the federal government, and state agencies can also impose liens and levies to recover unpaid tax liabilities. But what are liens and levies, and how are they different?
The Internal Revenue Service is treated as something of a boogeyman by many Americans. People speak in hushed tones about audits and garnished wages and are intimidated by the thought of speaking to an agent.
The IRS has introduced the Taxpayer Relief Initiative (TRI). This new set of policies aims to alleviate the cumulative financial strain the pandemic has placed on millions of families.
Cathy Strobeck, CPA, is the owner of Atlanta area based Add-Vantage Accounting Services, Inc. and the author of Solving the Puzzle: How Small Business Owners Can Grow Their Business and Avoid Tax Trouble.
What happens when you owe the IRS more money than you can afford to pay by the due date?