September 09, 2020

Did you just receive a letter in the mail from the IRS stating their intention to put a lien on your assets? Then you need to request collection due process hearing representation. When you owe money to the IRS, whether it is due to years of unpaid taxes or a mistake that was made on your tax returns which led to a failure to disclose all of your income (or any other reason for that matter), they will take whatever steps are necessary to ensure that they receive the funds owed to them. In most cases, this is process begins with a written notice. So, what should you do when you receive one? And what possible options are at your disposal? Let’s dive into an in-depth look at the process and what options are available.

When the IRS Believes You Owe Them Money

Sometimes, errors occur on tax forms that are not caught before they are submitted. For instance, if your wages were not properly disclosed on your yearly return, you may owe money. On the other hand, the IRS can also make mistakes. Though not often, this does happen, and it usually does not turn out in your favor because they now think you owe them back taxes and want to collect. No matter the reason, when a discrepancy is found, a notice will turn up in your mailbox from the IRS. They may plan to place a lien or levy on your home or business, your vehicles, your bank account, or even your future paychecks. This kind of notice is not ideal, but it happens more often than you think, so do not panic.

What Are the Different Types of Notices?

These written notices come in several different formats. There are some that are simply a warning, letting you know that the IRS believes that you owe back taxes. Others are more threatening, for lack of a better word, and inform you of their intent to seize your property or force you to set up a payment plan. Here are some of the most common notices you may receive, any of which should lead you to retain collection due process hearing representation to protect yourself.

  • Notice Number CP504 – This notice is just a general one. It is the IRS’s way of informing you that you owe the, money and that they plan on taking the next steps toward collecting it. When you receive this notice, it is best to contact them to request a hearing and proactively get ahead of the problem before penalties get more serious.

  • Notice CP90 – CP90 is a written notification, required by law, to inform you that the IRS intends to place a levy your property. This may include your paychecks, bank accounts, state income tax refunds and more.

  • Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320, Letter 3172 – The next step that the IRS will take is with this notice. From the title alone, it is clear that the IRS plans to file a lien on your property with the intent of seizing it from you and using those funds to satisfy your debt to them. Despite the ominous intent of this form with a long title, you still have the ability to request a hearing within 30 days of receiving the notice.

  • LT11 Final Notice of Intent to Levy and Notice of Your Right to a Hearing – This is the final notice that you’ll receive before the levy appears, and you end up losing some of your assets to the IRS. At this point, the IRS is extremely serious and will follow through with actions. Again, as with the previous notices, you still have the right to request a hearing in order to reach some sort of accord with the IRS before the actual levy or seizure takes place.

One thing that you see over and over again in the titles of these notices is a reminder of your right to a hearing. The IRS wants you to meet with them in order to reach an agreement rather than seizing your property. While they will seize your property if necessary, they prefer to work with you, as it is an easier road for them. Therefore, it’s important to take advantage of this option and retain collection due process hearing representation from a professional tax accounting firm who will act on your behalf.

What Are Your Options After Receiving a Notice?

While receiving a notice from the IRS can be disconcerting, you need to keep in mind that you still have several different options to choose from. These include:

  • Ignoring the Notice. This is not recommended under any circumstances. If you ignore the notice, then you could end up facing even more severe penalties. A failure to respond is seen as guilt in the eyes of the IRS, and if you owe enough money, they will definitely seize your assets as a form of payment. This could be something as small as keeping your tax return or as large as filing a lien on your house and forcing you to sell it to satisfy your debt. No matter what, you do not want to ignore any notice from the IRS.

  • Contacting Them to Ask for a Hearing. Another option involves proactively reaching out to the IRS to file a request for a hearing. Since they present you with the option over and over again on every notice, they certainly want to encourage this action. In most cases, you have 30 days after receiving the notice to request a hearing, so you don’t want to waste time. However, you should not be the person requesting that hearing. Getting yourself directly involved with the IRS can be problematic, because you more than likely do not know the ins and outs of tax regulations. You need to seek the professional guidance.

  • Reaching Out to an Expert for Help. For optimal results, this is the best option. While you can request a hearing yourself, you are better off allowing your representation to do so on your behalf. This professional will be by your side throughout the process, ensuring that you and IRS come to a mutually agreed upon solution.

Do You Really Need Collection Due Process Hearing Representation?

The short answer here is yes, you do! If you genuinely want a fair hearing, then you need a professional by your side throughout the entire process. The tax code is incredibly complex, and it takes an expert to not only help you navigate the audit process (that this could end up in), but also to ensure that you are treated fairly by the IRS. You do not want to end up in a deeper hole than you may already be in. Instead, seek the guidance of a tax professional who has extensive experience with these types of hearings and can pursue results and solutions that are in your favor.

It’s Time to Contact the Experts

If you’ve just received a notice from the IRS and want to retain collection due process hearing representation, our team at Enterprise Consultants Group is ready to help. Do not attempt to schedule a collection due process hearing on your own or even attempt to communicate with the IRS until you have been fully advised by one of our tax experts. With over 10 years of experience, our team will work diligently not only protect your assets, but resolve your tax issue with great benefit.

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