Receiving mail from the IRS is rarely pleasant, and it’s especially stressful when it’s a notice about collections. However, being in collections doesn’t have to spell disaster.
How Much Do I Owe?
The collections process is how the IRS alerts you to unpaid tax balances and pushes you to settle them.
You’ll get a notice from the IRS showing how much you owe, including any accumulated interest or penalties, and requesting full payment. Once the tax bill is issued, the 10-year collection period begins — that’s how long the IRS has to legally recover the debt before the statute of limitations runs out. After that time, you typically no longer owe it.
You’ll get a notice from the IRS showing how much you owe, including any accumulated interest or penalties, and requesting full payment. Once the tax bill is issued, the 10-year collection period begins — that’s how long the IRS has to legally recover the debt before the statute of limitations runs out. After that time, you typically no longer owe it.
What Happens If I Don’t Pay?
If you fail to pay what’s owed, the IRS has the legal right to garnish your wages or even take and sell your assets to recover the amount due.
Don’t worry, a skilled tax professional can help pause future collection actions or remove a levy or garnishment already in place. They can also assist in resolving the issue through options such as:
• Offer in Compromise
• Currently Not Collectible Status
• Manageable Payment Arrangements
Get Assistance
Book a free consultation with one of our tax professionals to start resolving your past-due taxes today.
