A collection letter from the IRS is not necessarily bad news, but the recipient’s response can turn that letter into a negative experience. The worst reaction would be to ignore the message. The better course of action is to consult with a tax attorney who can help you develop an appropriate response.
The tax lawyers at Baltimore’s Rosenberg Martin Greenberg LLP advise corporate and individual taxpayers in their communications with the IRS. With our assistance, you can respond to the IRS with confidence.
What Types of IRS Collection Letters Might You Receive?
Official correspondence that notifies you of an IRS collection action can take one of several forms:
- A “balance due” notice, telling you how much tax the IRS believes you owe
- A “balance due reminder,” which is your first notice that the IRS will begin a collection action if you fail to respond
- An “immediate action required” notice, which escalates the matter closer toward collection
- A “final balance due” notice, which is usually accompanied by a notice of the IRS’s intent to levy or seize your property to satisfy your tax obligations
- A “final notice of intent to levy,” which is a formal notification that the IRS will levy and seize your assets unless you take steps to pay your taxes within 30 days
You should never ignore any of these notices, even if you do not have the resources to pay the taxes that the IRS claims you owe. More critically, you should not panic or overreact to any IRS letters that you receive. If you are at a loss regarding how to respond, contact a tax attorney who will help you to gather all requested information and formulate a timely and reasoned response. The best answer allows you to control the resolution of the underlying matter without prompting further IRS scrutiny of your personal and business finances.
How Do You Know if the Correspondence is Really From the IRS?
You will always receive notifications from the IRS in writing. No IRS representative will call you by telephone with a demand for payment or other information. Further, an IRS representative will never threaten to arrest you or to take any similar punitive action.
Written correspondence from the IRS will be on official notice forms. You can always contact an experienced tax lawyer for assistance verifying the legitimacy of any correspondence purportedly from the IRS.
Let Rosenberg Martin Greenberg Guide Your Response to the IRS
The Baltimore-based law firm of Rosenberg Martin Greenberg LLP represents clients in Maryland, Delaware, and throughout the mid-Atlantic region on matters relating to their taxes, including communications with the IRS. It is important to remember that IRS notices and demands are issued as per strict guidelines. The communication is designed to resolve issues and not to intimidate or harass taxpayers. Please see our website or call our firm directly for assistance in responding to these communications.
- www.irs.gov: Do’s and Don’t’s for Taxpayers Who Get a Letter from the IRS. https://www.irs.gov/newsroom/dos-and-donts-for-taxpayers-who-get-a-letter-from-the-irs
- www.irs.gov: How to Know It’s the IRS Calling or Knocking on Your Door. https://www.irs.gov/newsroom/how-to-know-its-really-the-irs-calling-or-knocking-on-your-door
- www.forbes.com: How to Respond to an IRS Notice? Very Carefully. https://www.forbes.com/sites/robertwood/2016/02/24/how-to-respond-to-irs-very-carefully/#7f93662d146c