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We created the Tax Problem Resolution Blog to aid the average person to become more discerning buyers of tax resolution and tax representation services. Please read the index of articles below to learn more about the tax resolution industry and to assist you in solving your specific tax problem.

Jay Freeborne, Enrolled Agent at Washington Tax Services, open for business since 1989

Tuesday, January 4, 2011

A Review of IRS collections letters -- Where do you Stand?

As I tell my clients, you can really measure where the IRS - Automated Collection Systems (ACS)  is on your TAX case by the mail that you receive.

Here's the first letter:


CP71C or CP14 - Please Call us about your Overdue Taxes The good news about this letter is you are months off from being levied.  The bad news is:  this letter is telling you that the collection process is started.  There is no turning back.  If you are unable to pay the IRS in full, you will eventually need to resolve your case with them...which leads to...

the SECOND letter:


CP504 - URGENT - We intend to LEVY on certain assets.  While this letter is SCARY, it really is still an early letter in the IRS collection process. However, after getting this letter you should actively be asking yourself:  "should I get a tax professional?"

AND THEN: 


FINAL NOTICE OF INTENT TO LEVY -- Call to prevent immediate property loss.   The "FNOIL" letter, as we call it, is the final straw.  You will have your wages garnished or bank accounts cleaned out accompanied by a NOTICE OF LEVY-- from 30 to 60 days upon receipt of this letter from the IRS - ACS -- UNLESS you or your representative contact the IRS and come up with an alternate plan.


HOW DOES TAX REPRESENTATION HAPPEN? Here are some of the items that we, your tax professional, will need to begin representing you with the ACS:  Tax Representation thru the Internet, Phone and Fax. Should you appoint a tax professional like myself to represent you -- we will also be tracking your letters, as we will be CC'ed on them due to filing Power of Attorney on your behalf.

Did you receive one of these IRS letters? Want a licensed tax professional's perspective?  Call me at 1-866-525-7302 to discuss how we should address  them.  You can also email me at jfreeborne@watax.com   Jay Freeborne, Enrolled Agent, Washington Tax Services

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