The IRS uses a variety of collection activities to collect what taxpayers owe to the government. Among these tactics, a federal tax lien can be among the most difficult with which to cope. 

When you owe money to a creditor, that person or company has the right to pursue the debt through a variety of methods. It can send you letters or make phone calls to your home to demand payment on the account. It can also ask a judge to have your wages or salary garnished until the debt is paid in full. 

The IRS can utilize a number of different methods to collect on a tax debt that you owe. Among them, wage garnishment is one of the most common. You may be able to avoid an IRS wage garnishment by learning under what circumstances it is used and how it could possibly be released if you owe a debt to the IRS. 

The IRS expects you to file and pay your taxes on time each year. When you fail to submit a return, you put yourself at risk of IRS collection activities that could result in financial hardships for you and your family. 

Owing back taxes to the IRS threatens your finances and income. However, because of the FAST Act it can now put your ability to apply for or keep a passport in jeopardy. If you owe an IRS tax debt, you will benefit by learning if the FAST Act applies to you and how you can resolve your debt quickly to protect your passport. 

When you owe the IRS money, you put yourself at risk of having your bank account levied. A bank levy can invite financial hardship into your life and make paying everyday bills more difficult. However, you do have options for avoiding or removing an IRS bank levy. 

The IRS gives you until April 15 every year to file and submit your tax returns. Despite this generous deadline, you may find it difficult or impossible to get your taxes done on time this year. 

An Overview of IRS Transaction Codes

When you order transcripts of your tax return, you may notice a series of letters and numbers at the top. What do these letters and numbers mean and why did the IRS put them there? In most instances, the code is nothing to cause worry or alarm. You can understand your own tax transcript better by learning more about common IRS transaction codes.

Tax season can be a difficult time for individuals and businesses. Whether this is your first year filing complex taxes or you’ve let years of tax debts add up, help is available. There are a few different options when it comes to entrusting a professional with your tax case. Two of the most popular options are certified public accountants (CPAs) and tax attorneys. Knowing which is right for you comes down to your unique needs and goals, as well as the status of your case with the Internal Revenue Service (IRS). Tax debt is no small matter. Protect yourself with the correct tax professional for your situation.