Form Civ Pen
When you get an IRS notice about back taxes you might receive an Form Civ Pen. For most people, this means a fine, but there are other options. Back taxes can include interest and other hidden fees, making them even more burdensome than they look. If you owe the IRS money or think you may owe the IRS money, it is wise to seek help from a professional tax debt relief company. A skilled professional tax debt relief service can help you negotiate with the IRS in order to settle your tax debts for less than what you owe. Tax fines can be very large and can accumulate over several years if you don’t catch them on time. You can be levied a penalty for every month that you delay filing your return or for each day you fail to appear at your tax hearing. If you have a large penalty that you need to pay in less than one year, you might want to consider getting a partial month salary reduction.
Many people receive a levy because they forget or ignore a letter or notice from the IRS. The IRS can even levy property or assets that you hold as collateral, such as bank accounts or car titles. A common reason for a levy is failure to pay a tax bill in a timely manner. In these cases, the IRS can seize property or personal assets of the taxpayer. In the case of wages, the wages are usually garnished for at least two weeks after the wage is received.
One way to avoid levies is to pay your taxes on time each and every year. If you have no past due taxes, you will probably not be required to pay a levy. The IRS will issue a notice of levy, if you do not pay your taxes in full by the due date. If you still do not pay your taxes in full, the IRS will then issue another notice of levy and continue to try and collect the outstanding amount. If you still refuse to pay the penalties after this second notice of levy, a third notice of tax lien may be filed against your property. This third notice of tax lien is usually a larger than normal lien and can potentially consist of a portion of your property.
options with Form Civ Pen
If you cannot afford to pay taxes on time, you should attempt to work out an arrangement with the IRS. You can ask for an extension to pay taxes, which is available if the amount due is more than a total of fifteen hundred dollars. Ask for an extension only if you can show an extreme financial hardship. In addition to the option of an extension to pay taxes, there is also the option of a tax settlement. Tax resolution is a process in which the taxpayer and IRS agree on how much of the assessed penalties and interest will be waived. Tax resolution is not available for taxpayers who owe a total of over five thousand dollars.