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Steps to take after you receive an IRS tax collection notice

On Behalf of | May 6, 2024 | Criminal/Civil Tax Litigation |

Receiving an IRS tax collection notice can feel alarming, but the solution may be less stressful than you may think.

You should understand the steps you can take to address the situation and resolve any issues.

Review the notice carefully

First, carefully read the notice from the IRS. Learn what the notice is about, the amount owed and the deadline for your response. Ignoring the notice will only make the situation worse, so address it promptly.

Verify the information

After reviewing the notice, verify the information provided by the IRS. Check your records, including tax returns, payment receipts and any other relevant documents, for accuracy. Mistakes can happen, and you have the right to dispute any incorrect information.

Respond promptly

Although the government has collected $2.19 trillion since the start of fiscal year 2024, this agency will try to collect your taxes owed even if it is a small amount. Therefore, after you receive your notice, respond immediately. The IRS typically provides instructions on how to respond, whether it is through payment, documentation submission or other means. Failure to respond by the deadline could result in further penalties and collection actions.

Consider payment options

The IRS may offer installment plans or other arrangements to help you pay off your debt over time. Communicate with an IRS agent about your options to avoid additional penalties and interest.

Keep records

Throughout the process, keep detailed records of all communications and documents exchanged with the IRS. This includes copies of letters, emails, payment receipts and any other relevant information.

Stay informed about your rights and responsibilities regarding tax collection. The IRS website provides valuable resources and information to help you understand your options and obligations, allowing you to effectively address any tax issues.