The IRS initiates tax collection by sending a notice to the taxpayer’s last known address, indicating the amount owed and a payment deadline, typically 30 days. If unpaid, further notices follow, potentially leading to a Notice of Lien or Proposed Levy. Ignoring these notifications can result in the IRS levying bank accounts, garnishing wages, or seizing property through a “jeopardy assessment” without prior notice.
Taxpayers have the right to appeal these actions within 30 days to halt further collection.
The IRS assesses taxes through return filings, substitute returns, or civil examinations, issuing a Notice of Deficiency if additional taxes are owed. Taxpayers can contest this in Tax Court within 90 days. The IRS has a 10-year statute of limitations for tax collection, extendable during appeals or in cases of fraud. Collection methods include liens and levies, with taxpayers having appeal rights through the Collection Due Process (CDP) or Collection Appeals Program (CAP). Settlement options like Offers in Compromise or installment agreements are available. Ignoring tax liabilities can lead to severe consequences, including passport revocation or criminal charges. Taxpayers should exercise their legal protections to manage liabilities effectively.
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