Anthony Sykes & Company

            The pandemic caused a great disruption to many institutions, and the Internal Revenue Service ( IRS ) was not exempt from this. In fact, their mail services were paused for a time and many who had tax balances did not receive a notice for the tax years 2020 and 2021. When tax balances are not paid promptly, penalties and interest will compound the amount. How will the IRS rectify this problem?           At the end of 2023, it was announced that the IRS had created a program to provide relief for those who were not given a written notice that they had a tax balance. They will automatically waive penalties on taxed amounts of $100,000 or less. Those who have already paid may be eligible for a credit on other tax years or a refund of the tax penalty. Those with more than $100,000 in taxes assessed are not automatically enrolled, but they can apply for relief.    ...

When it comes to collecting tax debt, the IRS has a variety of options to use. Certain ones can only be used when proper criteria have been met. That is the case when it comes to a lien. A lien is the Federal government’s claim against the property of a taxpayer who does not pay their tax debt. This is not a levy , where the property is seized by the IRS. In this case, the government is saying it has the right above anyone else, to the value of the property in order pay the tax debt. This declaration will apply to any current of future personal assets. This would apply to a business as well.         A lien is only issued if a tax debt is noted and bill sent asking for payment. If this notice is ignored, then a lien can be issued. This can be a devastating situation, but there are options. Visit our site here to see how we can help you.