Whether you’ve been behind on your taxes for a year or more than a decade, knowing that you have to (eventually, inevitably, and soon) deal with the IRS and file those missed years and/or pay those back taxes is undoubtedly looming over your thoughts on a regular basis.

It’s important that you realize the seriousness of your situation. Whether you choose to defend yourself or hire an experienced tax firm you must understand that the IRS has virtually unlimited authority to collect money, including wreaking havoc on your finances and ability to earn. Tax liens, levies, garnishments, and aggressive collection practices are just a few of the bullets in their arsenal.

Ignoring communications from the IRS is a big mistake and frequently results in more aggressive collection tactics. Even if you’re positive you have done nothing wrong, you must be cooperative and attempt to work through the situation. If you’re already in the collections process, it’s likely that you have received a final demand for payment.

Below are the next steps in the collections process.

1. Tax Lien - This is a claim against any real property in which you have a vested financial interest. Usual targets for liens are bank accounts, homes, businesses, and automobiles. Although a lien does not give ownership of the property to the IRS, it does allow them to collect on profits made from the sale or distribution of such property.
2. Tax Levy - A levy does give ownership of your property to the IRS. Usually when the IRS places a levy on your property, it is actually planning to take the property at a future date. The IRS must give you at least 30-day’s notice and allow for a hearing to satisfy due process requirements.
3. Asset Seizure - As it implies, this is when the IRS takes your property and sells it off to satisfy your tax delinquency. Unlike a bankruptcy, there are very few personal items that the IRS is prohibited from seizing.
4. Bank Levy - Similar to a tax levy, this is when the IRS seizes your financial assets, including checking and savings accounts, retirement accounts, and investments.
5. Wage Garnishment - As either full or partial restitution for back taxes, the IRS can contact your employer and take a large portion of your wages. The IRS is under no requirement to leave you enough money to pay your bills. Depending on the amount of taxes you owe, wage garnishments can effectively ruin your life for years.
   
   The tax collection methods are not limited to just the amount of tax you owe. The IRS has the power to levy substantial fines and penalties on top of the back taxes. Failure to file taxes is the most common reason that the IRS assesses penalties on top of back taxes. Other reasons include a lack of accuracy, negligence, and tax fraud.

People handle their own defense against IRS collection processes every day and some are successful. If you want to try and fight the federal government on your own, here are some helpful suggestions:

• Aside from official tax sites, ignore pretty much everything you read on the Internet. Conspiracy theorists and half-baked Constitutional lawyers abound on the World Wide Web, and their advice is worth exactly how much you pay for it (nothing).
• Respond promptly to all letters and notices. Ignoring the IRS does not make the agency go away, and sometimes speeds up the collection process.
• Submit unfiled tax returns immediately. Even if you don’t have all the necessary information, do the best you can and file your returns. Then work on gathering the information and file an amended return later if necessary.
• Overcome a math error by referencing section 6213 (b)(2). If you request an abatement referencing that section of the tax code, the IRS will sometimes automatically erase the debt. At the minimum, they will have to allow you an appeal.
• If you don’t agree, speak up. One common method of collections is a letter where the IRS says they refigured your return and you owe them money. Contact the IRS and ask them to explain the changes.
• Try and negotiate an Offer in Compromise. An Offer in Compromise is admittance that you do owe back taxes, but that you can’t afford to pay all of them. The IRS uses a formula to see if you qualify. Fill out IRS Form 433a accurately to establish your income and expenses. 
• Work out an installment plan. The IRS will meet you halfway if they feel you are making an attempt to pay off your debt. Once a payment plan is agreed upon, do not miss a payment or you will be back at square one with the entire bill due.
• Communicate. If you remember nothing else from this guide, remember to stay in constant communication with the IRS until your case is totally resolved. When asking questions via letter, use return receipts to prove they got the letters. If you find you are in over your head and not making progress in your negotiations, it’s never too late to hire experienced tax professionals to help you plead your case.

An experienced tax firm deals with the IRS every day and understands the typical tax collection process, including how to respond to requests for information and other collection inquiries. Although tax firms don’t work for free, weigh the service cost against the cost of a poorly-handled appeal plus the effect of garnishments and levies.

Here are some of the ways a tax resolution firm can help you in your fight with the IRS:

• Advise you on the strength of your case. Tax firms are able to set aside emotion and advise you if your case has a good chance of dismissal or if your best option is to negotiate an Offer in Compromise to lower your bill.
• Bring your filings up to date. It’s a federal crime not to file income taxes and the IRS has no statute of limitations relating to unfiled returns. Once they figure out (and they will figure out) that you haven’t filed taxes, they will come after you and seek criminal prosecution. The first thing the IRS will do is file a substitute return in your name that includes fines and penalties. They will then start the collection process to collect the back taxes, penalties and fines. 
• Interpret IRS communications. IRS notices are often difficult for the layman to understand, which can result in ignoring notices completely. Tax firms deal with these notices on a regular basis and can explain what they mean in simple terms.
• Stop IRS harassment. Receiving constant threats from the federal government can be extremely stressful. Tax firms know how to stop the intimidating letters and get you on a plan to tax recovery.
• Walk you through appeals. The IRS appeals process can be lengthy and include many forks in the road. Experienced professionals like the people at Top Tax Defenders know the shortest route to resolution of your tax problems.
• Monitor IRS collection methods. Even though it is an arm of the federal government, the IRS does have restrictions governing how to collect taxes. Tax firms know when the IRS agents are overstepping their bounds and can take action to keep the government operating within legal boundaries.
• Stop wage garnishments. If you’re at the point where the IRS has already garnished your wages, a tax professional has the ability to step in and negotiate an installment plan to remove the garnishment and help you get your life back on track.
• Remove tax liens. Frequently, the IRS does not follow regulations when filing a lien against your property. Tax firms can review your file, appeal the lien if necessary, and often get it removed.
• Negotiate a settlement. It’s actually a lot of work for an IRS agent to garnish your wages or attach a lien to your property. They would much rather settle your debt for less money than go through all the paperwork necessary to tie up your income. Tax professionals know when an opportunity to negotiate is best for both sides of a tax dispute.
• Negotiate an installment plan. If you’re uncomfortable negotiating with the IRS, tax professionals can step in and negotiate a payment plan that will allow you to keep enough income to maintain your lifestyle yet still pay off your tax debt.
• Place temporary hold on collections. If you’ve lost your job, are suffering through an illness, or have some other temporary condition that affects your income, tax firms can get you placed on the “Currently Not Collectible” list with the IRS. This stops the harassing letters and phone calls until you get back on your feet and can negotiate a payment plan.
• Customized tax planning. Of course, the best way to stay out of trouble with the IRS is to have a knowledgeable firm prepare your taxes each year. Yearly tax planning and filing is remarkably affordable and certainly much cheaper and less stressful than battling with the IRS through the collections process. Take the positive approach and seek a meeting with a tax planning professional before you get into trouble and invite the wrath of the federal government. Consider a relationship with a tax preparation firm as an insurance policy; it’s a way for you to be proactive and to (once again) know what it feels like to sleep well at night.

If you feel overwhelmed with collection notices and threatening letters from the IRS, give Top Tax Defenders a call and let our tax attorneys and specialists take some of the weight off your shoulders. Our specialists have a background as IRS insiders, giving us a unique insight into how the government works and the best ways to help you get out from under the government’s thumb.

All of our compassionate, highly professional employees are committed to resolving tax problems of all sizes and types. When you work with Top Tax Defenders, you can count on service that includes:

• Detailed knowledge of the IRS's inner workings
• A free, no-obligation consultation that examines your unique tax issues
• Immediate, responsive service
• Flexible, competitive pricing with no upfront costs
• On-demand customer service, including a direct line with your caseworker