Workshops on the Collection Process
- Determining your ability to pay
- Enforcement Actions
- Options for a resolution
The collection process includes determining how much one can pay, enforcement actions if no response and the options available to resolve the tax debt. Knowing what to expect from each of these parts can help you navigate a resolution. The collection process requires working with the IRS/FTB to come up with a fair and reasonable resolution to tax problems and taxes owed.
When you call the IRS/FTB to inquire about your tax debt, one of the first questions they may ask is how much can you pay. If you do not know, the next question will be to ask about your financial information, which will be used to determine your ability to pay. If you qualify for a streamline installment agreement and can afford the monthly payment, then you will not have to submit any financial information. Otherwise, they will ask for your income, expenses, assets and equity to determine your ability to pay. 4 of the 6 options require financial information to qualify and some may require a lien to be filed.
When a creditor contacts a debtor and gets no response, the creditor will move forward to collect the debt. The IRS/FTB will use enforcement actions like levies, liens and seizures to collect a tax debt. Knowing what can happen if you do not pay or resolve the tax debt will help you decide which route to take. By not responding to the IRS/FTB, you put your financial situation in jeopardy and subject to collection actions and garnishments. Having a lien filed could make it difficult to refinance, sell or buy real property. Seizures are performed as a very last resort, but if warranted will be used on cases where both the balance and equity are substantial.
Options are available and can help you avoid enforcement actions. Knowing the options and what each involves can help you to resolve your tax debt. Things to consider, the more you pay the less interest and penalties you will pay. The sooner you contact the IRS/FTB, the less time you will spend anticipating collection actions. The IRS/FTB will not review with you the 6 options, but they will ask you how they can help you and as an informed taxpayer, you will be prepared with the right questions and possibly a resolution. Knowing specifics about your tax debt will allow you to choose the best resolution, avoid collection actions and the stress of what may happen.
The workshops offered at Collection Alternatives can help you understand all the parts of the collection process and the options available. If you have questions or would like to attend please call Collection Alternatives.