Receiving a notice or letter from the IRS is not a pleasant experience for anyone. But if you owe back taxes or are a delinquent in tax filings, it is crucial to understand what the IRS collection letters mean and how they can impact your life!

TLDR;

• Receiving a letter from the IRS can be intimidating, but it is important to understand what each of these letters mean and how they can impact your financial situation.

• The IRS will send out the Collections Letters: IRS CP501, IRS CP503 & IRS CP504 to give you the legal warnings

• IRS Letter LT11 or 1058 is the Final Warning before action is taken

• You may qualify for Tax Relief or Settlement if you are unable to pay your tax debt & Appeal the IRS LT11 or 1058

The process of receiving a collection letter from the IRS is never an easy one, but by learning how to appropriately respond, you can take the necessary steps to protect yourself and your assets.

So, let us delve into this topic and decipher these infamous collection letters sent from the IRS!

The Internal Revenue Service sends you various collection letters to inform them of their obligations. The three main letters to watch out for are

• CP501

• CP503

• CP504

These letters are gradually more aggressive as time goes on, and it is essential to understand what each of them means. CP501 is a notice that the IRS Collections dept issues whenever there is an assignment to the collections dept for a tax year of unpaid taxes. CP503 is the second notification sent when the initial balance has not been paid. The CP504 is the final warning that you have not paid the tax balance, and the IRS may pursue enforced collection by placing a levy on your income sources, issuing a federal tax lien, or revoking your passport.

Surprisingly, the IRS is sending out these letters, because they do not yet have the authority to take any actions. The series of letters that were sent is done because they have to give you proper notice before they take any action.

IRS Letter LT11 or 1058 is the final notice the IRS gives you prior to taking action.

Once the IRS sends the Letter LT11 or 1058, the IRS can commence collection activity, including levies, garnishments, liens, and passport revocation. Fortunately, there are ways to prevent the IRS from taking involuntary collection action against you. One way is to request an IRS Tax Relief program. The other way is to file an appeal. Filing an appeal with the IRS promptly after receiving a collection letter halts most collection activities.

When requesting an IRS Tax Relief Program, ensure that you are choosing the program that best suits your needs. Here are some tax relief options that taxpayers can consider: Installment agreement, Offer in Compromise, Currently Not Collectible status, and Bankruptcy. Each program has its advantages and disadvantages, and it is recommended that you speak with a professional tax attorney before choosing a tax relief program.

One issue that many taxpayers face is the fear of facing the IRS alone. Many others have attempted to resolve their tax issues, only to rub into IRS dead ends.

However, you can always enlist the help of the Tax Relief experts with Semper Tax Relief who can help you understand your options and represent you before the IRS.

Failure to take swift action when you receive a notice from the IRS may put you at risk of being placed in a financially strapped position.

It is essential to pay attention to all IRS letters, especially those related to collections & sent by certified mail.

They are meant to provide you with due process and a chance to redress any grievances before the IRS can start the process of taking involuntary collection actions.

The IRS Tax Relief Programs are readily available for those taxpayers who qualify. Such programs can help you get back on track with the IRS and avoid being subject to aggressive enforced collection action, including levies, garnishments, liens, and passport revocation.

Therefore, if you receive a notice from the IRS, we can review your situation to navigate the process and create a strategy that works in your best interests.