Unlike a regular creditor, the IRS doesn’t have to sue you and get a judgement before they can begin collection action against you. They simply have to “assess” the tax against you. Basically this means they simply have to type it into their computer. That’s it. Then they begin sending you their series of nasty collection letters.
All IRS collectors, whether it’s the IRS employees at their Automated Collection Service or the Revenue Officers who are the field collection staff. They all have awesome power to do harm to you.
So just what can the IRS do to hurt you. They can seize or levy (old fashioned word for “take”):
- - wages
- - bank accounts
- - retirement and investments accounts
- - 401(k)’s or 403(b)’s
- - Social Security benefits
- - lump sum payments for contractors
- - rental property
- - second homes
- - business equipment and inventory
- - Federal Tax Liens
- - make audit referrals
- - make criminal investigation referrals
Ask yourself: How will you make your house payment or buy groceries if the IRS seizes your wages, or seizes your bank account, or shuts your business down? Its time to think about these difficult topics because the IRS isn’t going away.
Congress needs money so it can keep spending, so it has told its collection department, the IRS, to start beating the bushes and to turn over every rock looking for tax dollars it can collect. If the IRS isn’t knocking on your door today, they probably will tomorrow or next week.
Don’t ignore these dangerous folks, you must take action to deal with them – fast.
Over the next several videos I’ll be discussing how to protect yourself from the IRS and possible solutions for your situation.
TaxHelpAttorney.com Tax Law video No. 092940