Delinquent Taxes Notices are a big step up in the process of sending notices or irs certified letters by certified mail or through regular letters. The simple act of posting a delinquent tax notice on a pole in front of the house, usually on the stakes in the yard, gets most people’s attention. The IRS is not going to send a “sob story” to anyone if you show them that you have a problem with the Internal Revenue Service. It is best to send a tax notice by certified mail so you can document and keep track of when the notice was sent and how it was received. Most tax professionals advise to send the delinquent tax notice by certified mail so there is proof of the delivery. The first portion of a notice explains the delinquent tax notice and any due dates for payment. Due dates for taxes are generally two weeks ahead of the next due date. The due date on your IRS schedule shows the due amount plus interest and penalties. Interest penalties for missed payments are in addition to the total amount of the delinquent amounts due. In most cases a notice will be sent by certified mail with an explanation of what to do with the money and where to go to make the payment. Some states allow collectors to use automatic money owed reports to calculate delinquent taxes. If you are one of these people, the IRS has a process called “file and release,” or F&R, where the tax debt is not filed in its entirety but released in part. The state then sends the remaining amount to the person or business in question, which is required to pay that amount within a certain amount of time or face serious consequences. If you are late with a payment the state will send an additional notice with a further warning that failure to pay the delinquent taxes by the specified date will result in serious consequences. You should always check the status of your state F&R with the IRS.
how to resolve Delinquent Taxes
You can avoid the long drawn out process through a trust fund transfer or a bank loan. If you owe delinquent taxes through taxes assessed in your state, talk to an specialist who specializes in resolving tax disputes. There are many attorneys in the country who have a special formula that can reduce or eliminate a tax debt. You should try to see several of them before making a decision. It may be worth the time and trouble to get help from an attorney before you have to deal with your state tax debt. When you receive a certified letter from the IRS, don’t ignore it, read it carefully and check whether there is a cure to the problem. You may find that there are options available to you. It may be that all or part of your delinquent tax notice is wrong or you may not be liable for other taxes. For example, if you live in Florida and owe Florida property taxes, you probably won’t be liable for taxes on the federal tax due in Florida. You need to understand that the IRS is very interested in getting back money owed to it. It is also interested in collecting amounts that are owed to it by delinquent property owners. In cases where the property owner is behind on taxes, the IRS will use various techniques, such as attaching property deeds, garnishing bank accounts or filing lawsuits against the owner. The IRS may use a number of methods to collect the overdue amounts. It is best if you take action as soon as possible before the situation gets out of hand.