Tax Problems

Collections

Gotten the dreaded IRS collection letter?

We can help even if the IRS has started collection efforts against you, you still have options.

Young woman staring away from collections letters concerned

“No one wants to receive a dreaded IRS letter. A collection letter might feel like the weight of the world is on your shoulders. We’re here to help.”

- Alyssa Maloof Whatley

A senior woman looking off to the right with a comment and money

What Happens If My Taxes Go To Collections?

With just 120 days to pay your outstanding tax bill, it’s common to end up in the IRS process. However if you are struggling to meet your tax obligations, you may need to speak with a qualified tax professional to explore your options.

Collections is the way the IRS notifies taxpayers of the debt they owe. Your notice outlines the amount you owe, breaking it down with tax due, plus any penalties and accruing interest.

How Many IRS Letters Will I Get?

The IRS will send your case through the whole collection notice cycle, which typically goes CP14, CP501, CP503, CP504, and CP90/LT11/Ltr 1058. The final letter gives you appeal rights to stop collection action and propose a collection alternative such as an installment agreement, currently non-collectible, or an offer in compromise.
 
If you failed to response to the notices, the IRS can moved forward with collection action such as wage garnishments, bank levies, and putting liens on personal and real property.

From left to right, Alyssa Maloof Whatley, Harrison Kulp, and Kiara Maxie

“Working with a qualified tax attorney allows Taxpayer to get personalized tax guidance to determine which IRS programs are best suits their needs based on their unique situation and financial goals.”

- Alyssa Maloof Whatley

What Happens If I Can’t Pay My Outstanding IRS Tax Bill?

If you can’t afford to pay your outstanding tax bill, there are IRS approved programs to get you back in good standing with the IRS. If you aren’t in a financial situation to pay your tax debt, you need to inform the IRS as soon as possible.

However, it’s always a good idea to schedule a strategy session with a qualified tax professional to be sure you enter into a repayment plan based on a long-term strategy that works for you.