When the IRS is calling for tax payment, it feels high-stakes, and the process takes on a life of its own. Negotiation is not informal conversation; it is formal presentation, with taxpayer rights, deadlines, and paperwork to comply with in the IRS negotiation process. This overview outlines rights and how experienced counsel can protect those rights in tax resolution.
What Rights Do Taxpayers Have During IRS Negotiation?
Taxpayers are not helpless when it comes to the IRS. There is a Taxpayer Bill of Rights that requires the IRS to operate within specific standards. These standards matter in every call, letter and meeting. If taxpayers know that they have these rights and these protections, they can make informed, decisive choices as they move towards a tax resolution. For better understanding, click https://www.irs.gov/taxpayer-bill-of-rights for further information.
- Right to Representation: Taxpayers are entitled to have a qualified professional speak on their behalf during any stage the case.
- Right to Be Informed: Taxpayers must receive clear notice of balances due, timeline for payment and reason for any action being taken.
- Right to Dispute and Appeal: Taxpayers are entitled to dispute any IRS proposed action or follow IRS appeal process if they disagree.
- Right to Pay Only the Correct Amount: Taxpayers are entitled to any adjustment needed to correct either an error, a misapplied payment, or outdated collection period.
- Right to Privacy and Fairly Collection: The IRS must weigh enforcement versus intrusion and follow the laws.
Can the IRS Seize Property While Negotiating?
Negotiations alone, do not terminate collection actions. If a taxpayer fails to comply with deadlines, then the IRS will still have the ability to file a Notice of Federal Tax Lien or issue a levy on a taxpayer’s bank account or wages. However, certain situations like when a taxpayer is waiting for a decision on a proposed installment agreement, a timely filed offer-in-compromise, or timely filed and perfect request for a collection due process hearing, will generally hold off or suspend a new levy while Agency considers the requested proposed agreement.
The risk for seizure increases once deadlines pass, and even more for missing financial documents. For numerous families, Raleigh, NC tax debt negotiation, become urgent upon receiving a Final Notice of Intent to Levy. The taxpayer must act quickly to ensure they preserve options and limit damages that could have been avoided.
What Role Does Legal Representation Play?
A tax professional provides comfort and organization to a hectic process. A tax advocate tests the numbers, verifies the legal grounds for the underlying tax debt being enforced, and acts and negotiates in the guide of the IRS regulations. When taxpayers have an advocated plan of action, based on the facts, they have time, clarity, and power.
- Case Diagnostics: An advocate will verify IRS assessments, use credits applied against assessments, and confirm that the taxpayer is on compliance path to get to the approval.
- Resolution Planning: Advocates prepare financials to support a package to pitch for an installment agreement or offer in compromise. Advocates offer the plan that is specific to taxpayers’ ability to pay.
- Protection And Enforcement of Hearings: An advocate communicates with the IRS regarding holds, and works for a levy release under certain circumstances, if a taxpayer.
- Strategic Appeal: If a proposal is denied or the revenue officer exceeded their authority, the advocate uses the IRS process to take an appeal on behalf of taxpayers.
How Negotiation Interacts with Tax Liens
When the IRS does send a Notice, the lien attaches as a claim to all property, once an assessment has been made, and the IRS sends notice and demand of payment. Negotiating a payment plan or any other option will lessen or manage the lien—but won’t relieve the lien. If the taxpayer enters into a compliant payment plan the lien may be withdrawn or subordinated if certain conditions apply, and if the original balance is paid there is a notice for completion of lien.
If a compromise amount has been accepted, the taxpayer has settled the tax liability for an agreed amount less than what the IRS requested, which should free the lien after obligations have been satisfied. Taxpayers must understand that a lien is different from a levy and/or asset seizure. A good payment plan can ensure that there are no levies in the taxpayer’s lifetime with a lien. Check this forum for more information on the difference between lien and levy.
When to Seek Legal Help Immediately
Seeking representation is appropriate for every tax-related tax issue as soon as a Final Notice of Intent to Levy has been issued or a revenue officer asks for financials. Tax representation is appropriate with a bank levy or wage garnishment, and with a federal notice that could route credit or property transactions.
Significant balance owed to the IRS, payroll taxes due by a business, expired deadlines, are some additional reasons a taxpayer should seek representation when contact has been made contrasted to determining tax fieldwork.
Local representation makes the process less daunting. For example:
Cumberland Law Group, LLC
421 Fayetteville St #1100
Raleigh, NC 27601
Having proper representation will assist with documentation, timelines for negotiation, and provide options. When taxpayers have representation, they will transition from fear and/or anxiety to a created plan, based on their own tax profile, to fit a reasonable plan to resolve the tax liability in a reasonable way.
