Upon receipt of a tax return or other document showing a balance due, the following process takes place in the Internal Revenue Service Center. Within several weeks after receipt of the document, the information is placed on the computer system. That system will then initiate a series of notices.
The first notice issued is a document titled “Request for Payment,” which informs the taxpayer that there is a balance due on the return, states the amount of tax, interest and penalties due, and requests payment within ten days. This is the notice statutorily required for the creation of a valid Federal Tax Lien. If the liability is for individual income taxes, and the liability is relatively small, the taxpayer will normally receive four subsequent notices before the IRS proceeds to take any administrative collection measures.
If the liability is not paid after the initial notice, the taxpayer will receive a second notice, “Reminder,” Notice 501.
The IRS will issue Notice 503, “Urgent, Immediate action is required “, five weeks after the first notice. The taxpayer will receive Notice 504, “Urgent, We intend to levy on certain assets. Please respond NOW.” in the mail five weeks after issuance of Notice 503 if payment is not made after that notice. Notice 504 is the nastiest of the IRS letters.
If the taxpayer fails to pay after Notice 504 the matter will be referred for collection by the Automated Collection System (ACS). If ACS is unsuccessful in collecting or resolving the matter the IRS will then issue Letter 1058, “FINAL NOTICE, NOTICE OF INTENT TO LEVY AND NOTICE OF YOUR RIGHT TO A HEARING. PLEASE RESPOND IMMEDIATELY.”
We find the right remedy to resolve your tax collection issues. Negotiating in the right place and at the right time increases the likelihood of success and a fair and impartial review.
Contact us to help you with your IRS debt at (972) 788-1524 or info@strategictaxgroup.com or use the form below.