Chances are if you owe money to the IRS or are dealing with some kind of tax issue, you’ve been bombarded with letters and notices. Some may be mild reminders to pay your taxes, and others may use threatening and scary language to demand you pay up by a certain date. Any letter by the IRS can be intimidating —especially if you don’t know what’s coming next or the best way to resolve the issue. Some notices from the IRS are scare tactics while others are serious and should be taken care of ASAP.
There are a couple of different kinds of letters you can receive from the IRS. Below is some helpful information about how to tell which IRS notices require urgent action. If you have received a notice from the IRS, a skilled tax resolution lawyer can advise you on the best path forward for resolving your tax issue.
Final Notice of Intent to Levy
Before performing a levy, the IRS is supposed to send taxpayers an “intent to levy” notice. In most cases, the IRS will send out a CP504 letter, which informs an individual that the IRS has an intent to seize their property as payment of their debt. This form is a scare tactic and does not give the IRS the legal right to seize your property. However, just because this initial letter does not hold a lot of weight doesn’t mean it should go ignored. If ignored, a CP504 form usually means a levy is around the corner.
Before the IRS can legally seize your property, they must send you a “final notice of intent to levy.” In rare circumstances, the IRS may forego the initial warning and only send a final notice. If you receive a final notice of intent to levy letter from the IRS, it is important to act immediately.
Any IRS summons usually means serious business and should not be ignored. An IRS summons is issued when an IRS agent suspects that you are falsifying your income or personal information and are not complying with their requests. If you have been issued an IRS summons, it is important to act immediately.
Summary of Contact
A summary of contact form, or form 9297, is a request issued by the IRS to receive certain information by a designated deadline. When the IRS sends form 9297, one of two scenarios is happening. Either the IRS is investigating whether you failed to file or deposit payroll tax, or they are requesting financial records to perform financial analysis or to find sources of your income to garnish. Both scenarios are serious and should not be ignored. If you receive form 9297, it is best to consult a skilled tax resolution lawyer to ensure the IRS does not levy your property.
If you have received any of the forms outlined above, it’s best to seek professional help from an attorney. If you choose to handle the matter yourself, you may end up providing unnecessary details or failing to provide all required information to the IRS, both of which could hurt your case. The best way to navigate an IRS notice is to work with an attorney who has your best interests at heart.
Consult a Skilled Tax Resolution Lawyer
It’s best to take care of most IRS letters in a timely manner. If you are struggling to handle a threatening notice you received from the IRS, you should consult with a skilled tax resolution lawyer. At Morgan Sebastian Law, we pride ourselves on the ability to represent taxpayers before the IRS in all 50 states. We have a proven track record of helping our clients navigate their tax situations.