Tax Law/Legal Services

Understanding the Tax Debt Process

If you’re behind on your taxes and would like to settle your tax debt, understanding the tax debt process is vital. If you’re facing a looming deadline, the IRS may decide to levy a portion of your paycheck until you pay up. You should also understand that the government can levy your assets and financial accounts, such as bank accounts, investments, retirement plans, and life insurance. The IRS is not a pleasant person to deal with, but there are some steps you can take to avoid a collection action.


Knowing how to get a tax debt levy dismissed is a key first step in the process. If you owe the IRS, you can use their website to learn your current tax liability, and you can call or mail them to find out more information. There are several ways to pay off your debt, including making full payments, filing an amended tax return, or settling your tax debt in an installment agreement. You should consult with a tax resolution professional if you can’t pay the full amount.

Once you understand the tax debt process, it will make the process easier for you. First, you can find out what you owe the IRS and what options you have. You can pay your tax debt in full, or you can make a payment plan. You can also negotiate your debt through the IRS by filing your tax return and making necessary corrections. But remember that if you can’t pay your entire balance in full, it’s wise to seek professional help.

If you can’t pay your entire tax debt, the IRS may not pursue you. It’s better to negotiate a payment plan before letting the agency know that you’re having trouble making payments. However, your creditor may decide to stop pursuing you. You can also try to get a lien on your property, even if you’re not fully compliant. A few other options can make the process easier to handle.

If you’ve gotten behind on your payments, you can ask for an installment agreement to make your payments more affordable. If you can’t afford an installment agreement, you can negotiate a payment plan with the IRS or state comptroller. This method will allow you to make smaller payments, which will reduce your monthly burden. This will prevent the IRS from collecting levies on your assets. You can also request a tax debt reduction through an offer in compromise.

In addition to a tax lien, the IRS will send a delinquency notice if you haven’t filed a return on time. In addition to the penalty, the IRS will charge an administrative collection processing fee of 10%. If you cannot pay your debt, you should contact the Internal Revenue Service. The Internal Revenue Service will help you understand your options for paying your debt and answer your questions. You can also seek a debt reduction through an installment agreement.