Representing Your Interests In A Tax Collection Action
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. If you are struggling with a tax debt, turn to The Nelson Law Firm. I can help you by defending your legal rights and explaining your options to you throughout the process.
The guidelines for tax collection differ between the IRS and SCDOR, but they do have several similarities. Both agencies’ processes require the taxpayer to provide certain financial information to the collecting agency. You may need to provide this information on Form 433. There are many variations of this form, but they all include an income statement and balance sheet for either an individual or a business.
Methods Of Collection
The IRS and SCDOR both use similar tactics to collect overdue taxes. These may include:
- Liens – A lien is similar to a mortgage on a residence. A lien does not take the asset away from the taxpayer, but the taxpayer cannot sell that asset without paying off the lien.
- Wage garnishment – They may seek a court order allowing them to take money directly from your paycheck.
- Levy – A levy is the taking of an asset, such as taking money directly from your bank account.
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. If you have received one of these notices and have questions, please give me a call to help you navigate the collection process.
I Can Help You Reach A Fair Agreement
Although you may feel overwhelmed by your situation, you do have options. These may include:
- Installment agreements – You and the agency create a repayment plan that works for your budget.
- Offers in compromise – You and the agency agree to a settlement lower than the original amount due.
- Currently noncollectible – If you are facing extraordinary circumstances, you may qualify for this special status that will stop enforcement efforts.
My firm, The Nelson Law Firm, will work to ensure you and the IRS or SCDOR reach a fair agreement for the collection of taxes due.