If a taxpayer neglects to file their taxes every year, the IRS will file a tax return for them using a Substitute for Return. These filings usually do not contain many of the tax deductions or credits a taxpayer may qualify for. This also may leave the taxpayer with a tax debt. When the IRS sends a “Notice of Demand for Payment” letter, it is an opportunity for a taxpayer to make arrangements for repayment of the tax debt before any IRS collection actions are taken. If a taxpayer fails to reach an agreement with the IRS, the IRS will commence collections.
The IRS has the authority to take collection actions against a taxpayer’s wages, bank account, property, and assets when a taxpayer has an outstanding tax debt. If the tax debt remains unpaid after notification, the IRS will take a variety of measures to satisfy the debt, including:
Therefore, it is essential that all taxpayers are fully up-to-date on all their filings. Strategic Tax Resolution is experienced with helping different taxpayers, such as W2 employees, self-employed filers, independent contractors, and small-businesses file all past years to lower or possibly eliminate a tax debt.