Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I received a certified letter from the irs. I don't know what…

Customer Question
I received a certified letter...
I received a certified letter from the irs. I don't know what it is yet. We owe 70,000 to them and can't pay all of it. We need to pay 20,000 but can only pay 10,000 right now. I don't know what to do.
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 20 minutes by:
6/6/2015
Tax Professional: Tax.appeal.168, Tax Accountant replied 2 years ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,641
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified
Welcome. Thank you for choosing us to assist you. My name is ***** ***** my goal is to help make your life, a little... less taxing.
When you write that you need to pay $20,000, does this mean that you have already set up an installment agreement with the IRS? If not, that's what you want to do, sooner, rather than later. In addition, it would be in your best interest to pick up the letter. More than likely it is a notice to indicate to you that they are about to take some kind of action against you. That action could be filing a tax lien, levying your bank account and/or wages. I am certainly not trying to scare you, but it is important for you to get the letter. Knowing IS 1/2 the battle. Assuming what the letter could be about is likely not going to do anything other then stir up anxiety.
Ask Your Own Tax Question
Customer reply replied 2 years ago
We had an installment agreement with them that we always paid on time. The irs ended it on Dec. 31st 2014. We needed to pay 20,000 by April 15th in order to keep the balance under 50,000 and set up a new payment plan with them. We were only able to save 10,000. What happens if you can't pay all that they demand but pay some of it?
Tax Professional: Tax.appeal.168, Tax Accountant replied 2 years ago
Hello again,
Q: What happens if you can't pay all that they demand but pay some of it?
A: Well, in most cases they will try to work with the taxpayer if they see that the taxpayer is making an effort to pay the tax. However, as you have a large tax balance, their intent is probably file a tax lien, levy your bank account, or both. My suggestion is schedule an appt. with a supervisor as soon as possible. Let them know that you have $10,000 that you can pay now. At this point, if I were you, I would not keep large balances in the bank account. SEE BELOW:
Taxpayers who owe, but can’t pay in full have several options for meeting their tax obligations. They can use the Online Payment Agreement application on IRS.gov if you owe $50,000 or less in combined tax, penalties and interest to request an installment agreement and receive an immediate notification, if they approve the request. An installment agreement allows you to make payments over time rather than paying in one lump sum. If you owe more than $50,000 you may still qualify for an installment agreement, but you will need to complete a Collection Information Statement, Form 433F. Otherwise, contact the IRS to discuss your payment options at 1-***-***-****.
REFERENCE SOURCE:
http://www.irs.gov/pub/irs-pdf/p4849.pdf
You want to head them off at the pass if you can because if they file a lien or levy your bank account and/or wages, that will be a problem.
Let me know if I can be of further assistance to you regarding this matter.
Ask Your Own Tax Question
Customer reply replied 2 years ago
I don't have a large balance in our bank account now...I do have the $ to pay some of that bill in there plus some extra for my bills. The letter came today and I wasn't home. Should I take the $ out of my bank account now or try to resolve it on Monday first? Can they levy after a first letter?
Tax Professional: Tax.appeal.168, Tax Accountant replied 2 years ago
Hello again,
Q1: Should I take the $ out of my bank account now or try to resolve it on Monday first?
A1: Check your bank balance tomorrow. If your funds are still there tomorrow, for now you are good. However, if the IRS did send a notice to levy the bank account, the bank could receive it tomorrow and freeze the funds in the account. I don't want to tell you to rush and take the money out, but I have had clients that have had their bank accounts drained by the IRS. Coincidence or not, it seems that banks usually receive levy notices towards the end of the week.
Q2: Can they levy after a first letter?
A2: They usually send a Demand for payment notice and if that is ignored, they send a Final Notice of Intent to Levy. If this is your first notice, you're likely okay. The letter is probably a Demand For Payment Notice. SEE BELOW:
We usually levy only after these three requirements are met:
We assessed the tax and sent you a Notice and Demand for Payment;
You neglected or refused to pay the tax; and
We sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy. We may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested. Please note: if we levy your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.
REFERENCE SOURCE:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Levy
Ask Your Own Tax Question
Was this answer helpful?
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,641
4,641 Satisfied Customers
Experience: 3+ decades of varied tax industry exp. Tax Biz owner

Tax.appeal.168 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Can the IL Dept of Revenue file a lien or come after me for
Can the IL Dept of Revenue file a lien or come after me for taxes that are over 10 yeaRS OLD? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,205 satisfied customers
I have an installment agreement with irs. It is supposed to
I have an installment agreement with irs. It is supposed to be withdrawn on the 1st of the month. My direct deposit went in 1 day late this month so the payment didn't clear at the bank. willthey try … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,495 satisfied customers
Do you have pay taxes on the interest you get off tax liens?
Do you have pay taxes on the interest you get off tax liens? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Re: CA Demand and Collection fees I filed my 2015 tax return
second opinion] Re: CA Demand and Collection feesHello, I filed my 2015 tax return in March of 2018. A refund was due as I overpaid the State of CA for my tax bill in 2015. When I got my refund check … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
217 satisfied customers
Re: CA Demand and Collection fees I filed my 2015 tax return
Re: CA Demand and Collection feesHello, I filed my 2015 tax return in March of 2018. A refund was due as I overpaid the State of CA for my tax bill in 2015. When I got my refund check I noticed $530 a… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
Can interest & charity donations be used on 2018 tax return?
Can interest & charity donations be used on 2018 tax return? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Which form code do I use on the 7004 form to file an
Which form code do I use on the 7004 form to file an extension for an S corp … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
My return indicates an error at State Taxes & Interest
My return indicates an error at State Taxes & Interest worksheet, indicating I have to fill in " 1.b.2" I can not do that because I haven't lived in any state other than FL during 2017. I don't know h… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,117 satisfied customers
On line 17, Form 1120 ,C Corp Federal Tax return are state
On line 17, Form 1120 ,C Corp Federal Tax return are state corporate income taxes deductible.If I am doing my Federal C Corp returns for 2017 are the state corporate income taxes due but not paid yet … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,117 satisfied customers
I want a refund for prepaid filing of state tax return.
I want a refund for prepaid filing of state tax return … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,117 satisfied customers
How to get a personal Arizona State Tax lien released that
How to get a personal Arizona State Tax lien released that is no longer collectible? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Will an installment agreement to pay back taxes with the IRS
will an installment agreement to pay back taxes with the IRS impact my ability to get a mortgage… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,117 satisfied customers
When I filed my 2016 tax return, the tax preparer used a
When I filed my 2016 tax return, the tax preparer used a form 4797 because in 2015 I sold a rental property. This was the only property I owned. I am retired & my annual income is a little over $20,00… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I owe taxes in 2007 with an installment agreement set up
I owe taxes in 2007 with an installment agreement set up last year.....even though I make payments as required the interest added causes the balance to go up. Being that in 2018 this year will be 10 y… read more
Carter McBride
Carter McBride
LLM
1,050 satisfied customers
Maryland State Taxes: The state of Maryland put a tax lien
Maryland State Taxes: The state of Maryland put a tax lien on my account because I did not go to I r s audit and had moved and the auditor reversed all of my deductions. This was for the year 2008, 20… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have a federal tax lien filed 2015 with 2 assessment dates
I have a federal tax lien filed 2015 with 2 assessment dates in 2008 and 2009. you told me the both expire 2018 and 2019 respectively. how do I obtain an early release from the lien? I would like to p… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If I owe taxes and i have an installment agreement and I get
if I owe taxes and i have an installment agreement and I get married can that affect my new husband … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,495 satisfied customers
I have an installment agreement with IRS for monthly
I have an installment agreement with IRS for monthly payments. I paid 8 days late on this months payment. Can they cansel the agreement??… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,495 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x