I understand the feeling because I’ve been there. The envelope’s return address is from the IRS! I better ignore it! But please don’t. The IRS can and does seize property for past-due tax bills

The IRS has shown some benevolence during the COVID-19 pandemic, extending deadlines and allowing more time to comply with information requests.

The end to this grace period is coming soon and you WILL be required to eventually pay your tax bill they say you owe. Here is what the IRS can do to collect your unpaid tax bill:

File a Notice of Federal Tax Lien

A lien will attach to property such as your real estate, vehicles, or accounts receivable. The filing of a Notice of Federal Tax Lien puts the public on notice that the government has a claim against your property including property acquired after the date of the notice. Such a lien can harm your credit rating. A Release of Notice of Federal Tax Lien is issued only after your account is settled in full.

Serve a Notice of Levy

This allows the IRS to seize and sell your property to pay taxes that you did not pay voluntarily. Levies can be made on property you own such as real estate and vehicles. It also extends to property you own which is held by third parties, such as deposits in a bank.

Apply Overpayments.

The IRS can offset any refunds that may be due to you against a prior tax liability still outstanding.

What You Need to Do

If you receive correspondence from the IRS, answer it promptly. You may not agree with their request for additional amounts due, but a prompt reply to let them know that you have received their notice may keep you from receiving more unpleasant notices.

As always, should you have any questions or concerns regarding your tax situation please feel free to call us.