What if you Can Not Pay The Amount Due?
These collection actions will continue until your account is paid in full or until the 10- year time period that they have to legally collect the tax liability, expires. Instantly after the income tax filing date for each year, April 15, the IRS will start to add penalties and interest to any unpaid balance that is owed. Penalties and interest are continually added until the entire liability is paid in full. Even if you properly submit an extension of time to file your tax return, it does not mean that you have an extension to pay the balance that is owed.
What Happens If You Do Not Pay The Amount Due?
Coping with the IRS Collection process is one of the cruelest emotional and financial stress that one can endure. If you do not secure a way to obtain funds and pay the IRS what you owe, they can take drastic measures such as garnish your wages, seize your assets or levy the funds in your bank account. There is good news though, IRS Collection actions can be controlled as long as you make an effort to contact the IRS. If you are simply unable to pay the tax liability that you owe, there are other steps you can take to ensure that the IRS will not use severe collection action against you. Do not wait for the IRS to force the severe collection actions on you, be proactive in resolving your account as soon as the problem is made aware.
IRS Collection Deadline
the IRS will issue a final notice called a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. After this notice is successfully sent, the IRS will take matters into their own hands and aggressively take collection action against you to ensure payment. Some of these actions include bank levies, garnish your wages, seize your property such as cars, real estate, investment account or basically anything they find out that you own. They will sell your assets to satisfy the tax liability that it owed.
When A Third Party Is Involved
Most of the time you can come to an agreement with the third-party liability collectors based on their programs. If you feel that it would be best to resolve your case directly with the IRS, you can make a written request to have your account transferred back.