Tax Collections

If an individual or business is found liable for owing a tax debt to the IRS or state tax authority, the taxpayer may be subject to the tax collection efforts of the applicable agencies.  Whether an individual never filed their taxes, or failed to pay adequate taxed, or took excessive exemptions or deductions, the IRS will engage in tax collection efforts to recover those funds from the taxpayer.

IRS Tax Collections

The IRS and the Tax Collections Revenue Officers are highly effective when it comes to collecting back taxes and tax debts from taxpayers.  The IRS has the authority to go beyond the scope of common collection methods, including involuntarily induced collections, property liens and seizure of assets.  The IRS may issue collections efforts against a taxpayer without their permission and actually garnish their wages and/or put a levy on their back account.

 The IRS is also known for the seizure of assets in order to re-sell and put the proceeds toward the tax debt owed, as well as imposing tax liens on real property.  In some cases, the IRS can even force the sale of a home if the IRS has a first title lien attached to the property.  However, it should be noted that a tax lien is generally a last report method for the IRS and only occurs after the IRS has made continued and unsuccessful attempts to get the taxpayer to respond or cooperate.  Once a lien is issued, it attaches to the home and prevents the taxpayer from selling the property without first satisfying their tax liabilities.

While the methods of the IRS for tax collection are known as particularly burdensome, it should be noted that the IRS is willing to work with taxpayers before engaging in the notoriously harsh collection methods.  Even if a taxpayer cannot pay their tax liability in full on a particular day, the IRS has an open line of communication and is willing to work out payment plans to avoid collection efforts .  The best way to avoid potentially embarrassing and burdensome collection efforts by the IRS is to diligently file tax returns with information that is as accurate as possible, and to always respond promptly to an IRS tax-related inquiry.

Country Tax Collection

The United States collects taxes from every taxpayer in the country on April 15th of every year.  While there are no “national” sales tax revenues for the federal government, there are significant yearly taxes paid by nearly every individual and non-tax-exempt business in the country.  Additionally, the US taxes goods that are imported with tariffs of selected goods at ports throughout the Country.  If federal taxes to the US are not paid by an individual or business, the IRS can engage in collections methods that are highly effective at getting payment for tax debts.  The US can attach property, garnish wages, levy bank accounts and seize assets in order to settle taxpayer debts.

Sales Tax Collection

Sales Tax Collection rates vary between different state jurisdictions, but the overall methods of collection tend to be imposed on consumers as part of the purchase price of most goods.  There are some states that are known for high sales taxes (i.e. New York), and others that have a very low or zero percent sales tax rate (i.e. New Hampshire).  The businesses add sales tax onto the final charge to the customer, and then forward that money onto the government.  With the exception of limited goods, and “tax free holidays”, sales tax applies all year-round.

Help for Tax Collection

Seeking out the help of an experienced tax attorney who is knowledgeable on income tax collection laws can translate into major savings for the taxpayer when compared to the resolution that would have otherwise been achieved.