Denver tax season is coming to a close, and next year’s taxes are probably the furthest thing from your mind. However, it’s important to remember that you can receive additional notices from the IRS throughout the summer for a number of situations. While this isn’t an exhaustive list of the notices you might receive from the IRS, it’s a good starting point and something to keep in mind as the summer goes on.
Refund hold/offset notices
Most of the time if you file prior to the IRS refund deadline of April 15 you will receive your refund. However, there are a few instances in which you might not receive your refund, instead they will be held or “offset.” This might occur if you are expected of fraudulent activity, owe the IRS money, or have additional outstanding obligations such as child support or past-due student loans.
Past due/collection notices
This notice is more common than you would think. If you have yet to set up a payment plan, or some sort of arrangement with the IRS you might be getting these notices throughout the summer. It’s important that you set up a payment plan as soon as possible after receiving these notices. It’s okay if you can’t pay what you owe them immediately, but it’s extremely important that you at least reach out. Just as a reminder, it is possible to set up the following payment plans:
Long-term repayment plans: Your taxes, penalties, and interests total less than $50,000 or less
Short-term repayment plans: Your taxes, penalties, and interests total less than $100,000
Setting up a payment plan will depend on your current tax situation. You can apply online for a payment plan, but be sure you have all personal information such as your name, address, contact information and social security number.
If you don’t set up a payment plan, you might get a collection notice from the IRS. If you have ignored all notices prior, the IRS is within their rights to place a tax lien or levy
against you. The IRS can also garnish wages, acquire property and even withhold your passport. Do not ignore any attempt to collect tax debts from the IRS.
It is the job of the IRS to check to see if tax filers are reporting income as required. If the IRS has noticed that you might have underreported your income, you will receive an underreported income notice which might result in you paying fees and additional taxes. It’s important to know that if you receive an underreported notice, it’s not from the most recent tax filed but from the year prior.
If you receive any additional notices throughout the summer that don’t fit in to the above categories, please contact our Advanced Tax Solutions team. Any notifications from the IRS will always come in the mail. If you receive any phone calls from representatives claiming to be the IRS, do not engage and do not provide any personal information. It’s been reported that many scammers pretend to be the IRS via phone calls asking for social security information and requesting payment for overdue taxes. Always reach out to the IRS directly if you believe that you owe taxes, and contact your attorney general if you have received one of these calls.
Always remember that you can reach out to our Advanced Tax Solutions for additional information or to have your tax questions answered. We are here to help you get started on the path to success when it comes to your taxes. If you have received a notice from the IRS, contact us for IRS tax lien help