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Ask Phil: IRS Notices

Today, Optima Tax Relief’s Lead Tax Attorney, Phil Hwang, discusses IRS notices, including when you can expect a notice to turn into enforcement and how to respond to a notice. 

Receiving an IRS notice can be very intimidating, especially when you are being notified of a tax balance due. But most people want to know exactly how many notices the IRS will send before they begin to take certain actions, such as levying your bank accounts, garnishing your wages, or placing a lien on your property. Unfortunately, there is not a set number that will trigger IRS enforcement as each case is different, but on average, a taxpayer might see about six notices come in the mail before the IRS begins to collect. A Final Notice of Intent to Levy will always be sent before the IRS takes action. The IRS will not and cannot take action without it.  

If you receive a Final Notice of Intent to Levy, you should act immediately. If you do not, the IRS can seize your property, bank accounts, wages, government benefits, and more. The most obvious way to resolve the issue is to pay your tax balance in full within the set amount of time the IRS provides. Although most people who find themselves in these situations typically do not have the funds to pay, doing something is better than ignoring the issue. Some other options you may have are: 

  • Setting up an installment agreement with the IRS 
  • Submitting an offer in compromise 
  • Apply for Currently Not Collectible status 
  • Apply for Innocent Spouse Relief  
  • Request a Collection Due Process hearing if you disagree with the notice 

Tune in next Friday for another episode of “Ask Phil” where Phil will break down IRS audits. 

If You Received an IRS Notice, Contact Us Today for a Free Consultation 

How Will the Inflation Reduction Act Affect Your Taxes?

With the recent passing of The Inflation Reduction Act, individuals who have unfiled tax years or unpaid tax debt may now expect an increase in IRS collection enforcement. Optima CEO David King and Lead Tax Attorney Philip Hwang explain how the Inflation Reduction Act can directly affect taxpayers and how to get compliant with the IRS.