IRS Enforcement Actions for Past Due Debt: What You Need to Know

As a taxpayer, it's your responsibility to pay your taxes on time. However, if you fall behind on your tax payments, you can expect the Internal Revenue Service (IRS) to take enforcement actions to collect the past due debt. 

The IRS has various tools at its disposal to collect unpaid taxes, including wage garnishment, bank account levies, and property seizures. In this article, we'll take a closer look at IRS enforcement actions for past due debt.

The collection statute end date (CSED) is an important concept to understand when it comes to past due tax debt. For more information on CSED, please refer to the following article: 

Wage Garnishment

Wage garnishment is a common IRS enforcement action for past due debt. It involves the IRS instructing your employer to withhold a portion of your wages to pay off your tax debt. The IRS can garnish up to 15% of your disposable income, which is the amount of money you have left over after deducting taxes and other necessary expenses.

Bank Account Levies 

The IRS can also levy your bank account to collect unpaid taxes. A bank account levy involves freezing your account and seizing the funds to pay off your tax debt. The IRS can levy your bank account without a court order, but it must provide you with notice before doing so.

Property Seizures 

In some cases, the IRS may seize your property to collect unpaid taxes. The IRS can seize your home, car, or other assets and sell them to pay off your tax debt. However, the IRS must follow specific procedures before seizing your property, including providing you with notice and an opportunity to appeal the seizure.

Liens 

The IRS can also file a lien against your property to secure its interest in your assets. A tax lien is a legal claim against your property that can make it difficult to sell or refinance. If you have a tax lien, the IRS has priority over other creditors, which means that it gets paid first if your property is sold. 

Passport Issuance, Renewals, and Revocation  

Past due tax debt can affect your passport renewal. The IRS is authorized to notify the State Department of taxpayers who owe more than $51,000 in unpaid taxes, penalties, and interest. Once the State Department receives this notification, they can deny your passport application or renewal or even revoke your current passport.

If you owe past due tax debt and your name has been certified to the State Department, you'll need to resolve the issue before your passport application or renewal can be processed. This can involve paying your tax debt in full or entering into an installment agreement or other payment plan with the IRS.

It's important to note that the State Department may also deny or revoke your passport if you have other types of outstanding debt, such as unpaid child support or federal student loans. If you're planning to renew your passport, it's a good idea to check your credit report and resolve any outstanding debts to avoid any potential delays or complications.

Revocation of Professional License

In some cases, the IRS may be able to seize your professional license if you owe past due tax debt. However, this is generally a last resort option that the IRS uses only in extreme cases where other collection methods have been unsuccessful.

If you have a professional license, such as a medical or law license, the state licensing board may require you to disclose any outstanding tax debts. If you owe a significant amount of unpaid taxes, the IRS may request that the licensing board suspend or revoke your license until the debt is paid in full.

It's important to note that the IRS must follow specific procedures before seizing your professional license. They must provide you with notice and an opportunity to appeal the seizure before taking any action. Additionally, some states have laws that limit the IRS's ability to seize professional licenses.

If you owe past due tax debt and are concerned about the potential seizure of your professional license, it's essential to address the issue as soon as possible. The IRS may be willing to work with you to set up a payment plan or negotiate a settlement. Ignoring your tax debt can lead to severe consequences, including the seizure of your professional license.

How can an attorney help you in IRS enforcement actions

If you're facing past due tax debt, it can be a daunting and stressful situation. However, our law firm has experienced tax attorneys who can help you navigate the complexities of the IRS collection process and work towards a favorable resolution.

Here are some ways that our law firm can assist you in dealing with past due tax debt: 

1. Negotiate with the IRS: Our tax attorneys have extensive experience negotiating with the IRS to reduce or eliminate penalties and interest on past due tax debt. We can also negotiate a payment plan or offer in compromise to settle your tax debt for less than the full amount owed.
2. Stop IRS collection actions: If the IRS has initiated collection actions, such as wage garnishment or bank levies, our attorneys can help you stop these actions and negotiate an alternative solution.
3. Provide legal representation: If you're facing an IRS audit or tax court proceeding, our attorneys can provide legal representation and help you navigate the process. We can also help you appeal IRS decisions and work towards a favorable outcome.
4. Provide guidance and support: Dealing with past due tax debt can be overwhelming, but our attorneys can provide guidance and support throughout the process. We can answer your questions, provide legal advice, and help you make informed decisions.

At Tavangar Law Group, we understand the stress and uncertainty that come with past due tax debt. Our experienced tax attorneys can help you navigate the IRS collection process and work towards a favorable resolution. If you're facing past due tax debt, don't hesitate to contact us to schedule a consultation.

Useful Website Links:

1. Internal Revenue Service (IRS) website: https://www.irs.gov/
2. IRS Collection Information Statement (Form 433-A): https://www.irs.gov/forms-pubs/about-form-433-a
3. IRS Offer in Compromise Pre-Qualifier tool: https://irs.treasury.gov/oic_pre_qualifier/
4. American Bar Association (ABA) Tax Section: https://www.americanbar.org/groups/taxation/
5. Taxpayer Advocate Service (TAS) website: https://www.taxpayeradvocate.irs.gov/

-Published by Salar Tavangar, Esq.