A Few Most Common IRS Tax Problems That People Face


You will find that IRS publishes every year, its Data Book which will provide an insight into various issues that taxpayers may encounter. It is worth reading about those issues to keep yourself updated.

The tax relief professional can offer you necessary support, in case you need any tax lawyer to negotiate your case with IRS.

Here are the four most common problems that most taxpayers may often face:

Failure to file any return at all

As a US citizen, you are supposed to send your tax return, whether you may be owing the government any money or sometimes the government may also owe you.

If you fail to file timely then you may not get the refund money that you are owed. However, you have got only 3 years to get all your paperwork completed to get your money back, and if you have short-changed the government then the failure to file may lead to fines and that may add an extra 25% of what you owe, will be charged over 5 months.

Failure to pay taxes

Receiving a form CP14 from the IRS will mean that you have short-changed the government on the taxes and you owe them a certain difference.

If your debt is significant then the agency may allow you to negotiate a Partial Payment Instalment Agreement to break your payments into a few monthly instalments.

Notification of tax levy

Failing to pay taxes may lead to your property seizure. The IRS will never seize your property without any prior announcement. They will first notify you by using any of these forms:

  • LT11
  • CP504
  • CP90
  • CP91.

Notification of tax lien

Also, the IRS can use a tax lien for collecting unpaid tax debts. If you have received Letter 3172, that means, the government is proclaiming its rights to your assets.

This letter may also be sent to your creditors because a tax lien will allow the government to claim your assets much before all others.

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