Las Vegas IRS Collections And Elsewhere
Each year, the federal government requires individuals, couples and businesses in the United States to pay taxes if they earn more than a certain amount of money during the year. These taxes are usually due during the spring of the following year. However, in some cases, you may not be able to pay the money you owe to the IRS on time. In other cases, you may not even realize that you owe the money in the first place. Regardless of the situation, you need to take action when you owe back taxes. Otherwise, whether you live in Las Vegas or elsewhere, you will be subjected to the IRS collections process.
Understanding the Las Vegas IRS Collections Process
If you file your tax return but don’t pay your owed tax in full before the due date, or if you fail to file a tax return at all, the IRS will send you a bill for the amount you owe. Once the IRS has sent this bill, the collection process has officially begun. This process will continue until you have paid your bill in full or the statute of limitations for collecting the debt expires. The statute of limitations usually expires 10 years after you file your tax return for the year in question.
After the IRS calculates the amount of tax you owe, you will receive a written notice in the mail demanding payment. This notice will also describe how the balance was calculated, as it will likely include your owed tax, penalties and interest. Interest and penalties will continue to accumulate on the debt until it is paid in full. For this reason, it’s important to act quickly as soon as you know you owe a balance.
The IRS can take a variety of actions to collect an unpaid debt from you. If you owe unpaid taxes, the IRS typically imposes a federal tax lien, which allows them to seize your property to recover the debt. This tax lien will be imposed automatically if you fail to pay your balance within ten days after the IRS sends you its first demand for payment. This lien is valid against property you already own, as well as any property you acquire after the lien is established. In addition, the federal tax lien will also harm your credit rating.
To satisfy your Las Vegas IRS Collections, the IRS may seize assets. Assets seized may include bank accounts, personal property, wages, retirement income and social security benefits. Any future federal or state tax refunds you receive can also be taken by the IRS. IRS collections activity whether you reside in Las Vegas or overseas will continue until your debt has been paid in full, you have reached an agreement with the IRS or the collection period for your debt has expired.
How to Avoid Las Vegas IRS Collections
The best way to avoid IRS collections in Las Vegas or elsewhere is to pay any federal income tax you owe before the due date. If you can’t pay your tax by the due date, you should pay it as soon as you receive a bill if you can. However, if you are unable to pay your bill and the IRS begins the collection process, you still have access to several tax relief options that may help you reduce or eliminate the burden of debt. These options include:
- Installment agreements. In some cases, you may not be able to afford to pay your balance in full right away, but you could afford to make a smaller payment each month. If so, you can contact the IRS and establish an installment agreement. This agreement will allow you to pay small portions of your balance over time. If the IRS agrees to your installment agreement, they will also stop trying to collect from you in other ways.
- Offer in Compromise. If you are unable to pay in full even with an installment agreement, you may be able to resolve your debt by proposing an Offer in Compromise. If the IRS agrees to your offer, you will be able to eliminate your entire tax debt by paying only a portion of what you owe. However, the IRS usually won’t agree to an Offer in Compromise unless your offer is high enough to cover the amount the IRS expects it would be able to collect from you based on your income and available assets.
- Delayed Collection or Currently Not Collectible. The IRS may be willing to delay its collection activities if you can show that you don’t have any way to pay. In most cases, this means that you must demonstrate a financial hardship. If the IRS determines that you can’t currently pay, they will mark your account “currently not collectible,” and they will stop trying to collect from you temporarily. However, the debt won’t go away. In the future, the IRS will re-evaluate your situation to determine if collection is possible. In addition, penalties and interest will continue to accumulate while collection is delayed. The IRS may also file a federal tax lien while the account isn’t in collection.
In rarer cases, taxpayers may qualify for other types of relief. For example, if you are liable for tax that is actually owed by your spouse, you may qualify for innocent spouse relief. If you can show that you have a good reason for failing to pay your taxes on time, you may also qualify to have some of your penalties eliminated. To learn more about these other tax relief options, please click on the button below to request a Free Tax Debt Analysis.
What to Do When You Owe Las Vegas Back Taxes Or Back Taxes Elsewhere
The Las Vegas IRS Collections Process is the same whether in Las Vegas or elsewhere in the United States can be aggressive and unforgiving. As soon as you know that you owe back taxes, you should begin the resolution process. To show that you are making your best effort, pay as much as you can toward your debt. Next, begin looking for a tax resolution that will work for you. If you aren’t sure what resolution is best, consider talking to an experienced tax resolution professional such as the tax professional at Tax Samaritan. A professional can help you compare these options so you can make the choice that’s best for your future.
At Tax Samaritan, We Rescue Troubled Taxpayers From Las Vegas IRS Collections
Click the button below to request a Free Tax Debt Analysis today to get started with the resolution of your Las Vegas IRS Collections and learn about your options.
Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US tax preparation and representation. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.
When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a US taxpayer overseas, we further recommend that you seek a professional who is experienced in resolution services, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).
Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.