Tax Collection Actions
While it may seem that the IRS and South Carolina Department of Revenue (“SCDOR”) are all-powerful, there are restrictions as to the actions they can take to collect a tax debt. Knowing these restrictions is the key to ensuring back taxes do not place an undue burden on any taxpayer.
The guidelines for tax collection differ between the IRS and SCDOR; however, there are several similarities. Both agencies’ processes require the taxpayer to provide certain financial information to the collecting agency.
This information is often provided on one of various Forms 433. There are many iterations of this form, but, in short, it provides an income statement and balance sheet for either an individual or a business.
Liens And Levies
Liens and levies are two tools the IRS and SCDOR use to collect the taxes due to them. A lien is similar to a mortgage on a residence. A lien does not take the asset away from the taxpayer, it is simply a way of securing the debt.
A levy is the taking of an asset. In order to place a lien on a taxpayer’s assets and levy those assets, the IRS and SCDOR must follow certain procedures and give certain notices to the taxpayer.
We Can Help You Reach A Fair Agreement
If you have received one of these notices and have questions, please give us a call to help you navigate the collection process to ensure you and the IRS or SCDOR reach a fair agreement as to the collection of taxes due.