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Financial
May 1, 2018

Do You Owe the IRS?

Sponsored Content provided by Karen Durda - President, Enrolled Agent, Century Accounting and Tax Services, Inc.

Spring brings so many happy days.
 
Birds are singing. Flowers are blooming. The weather is warmer. The IRS is calling demanding their money…
 
Wait, what?
 
No, the IRS cannot call you! I cannot repeat it enough – the IRS cannot and will not call you for an immediate demand for payment over the phone via credit/debit card, money order, iTunes card or any other type of payment.
 
What can happen is, if you are now behind on your federal tax obligations and the IRS is not actively working on collections, one of the four approved collection firms will be calling on you. You should have received a letter from the IRS stating that they are turning you over to collections, and you could also receive a letter from the collection agency.
 
They cannot demand an immediate payment over the phone, either. They must inform taxpayers how they can make payments to the IRS. They must announce themselves as contractors for the IRS, be respectful and follow the Fair Debt Collection Practices.
 
How do you avoid collections coming for you with via the IRS or an outside agency? The answer is as simple as paying your debt. But if you cannot do so, you can be proactive, even if you have multiple years due and more than $25,000.
 
If you owe for one year, you can call or go online and set up a payment plan. If you owe for multiple years, you will need to call and have more information on hand. Be prepared to be asked questions on your tax return, monthly income and expenses. Over $50,000 also requires a direct payment plan with the IRS.
 
Thinking of making an offer with the IRS or hiring one of the tax resolution companies you see on late night TV? Stay tuned to find out what rules are required by the IRS and what national resolution companies may charge you.
 
Karen S. Durda, EA, President of Century Accounting and Tax Services, Inc., has been in the profession since 1984. As an Enrolled Agent credentialed by the Treasury Department, she has the rights as afforded by Congress to represent individuals and businesses before tax authorities. Since May 2012, she has also had the distinction of being a Dave Ramsey Endorsed Local Provider, assisting in budgeting and financial peace for a four-county area and parts of Myrtle Beach.As a Qualified Business expert with the New Hanover County courts, she has experience and knowledge of various scopes of professions and industries, such as medical, health services, legal, construction, retail, real estate, auto sales and service, insurance and restaurant. Continuous tax law courses throughout the year keep her up-to-date on all tax rules, regulations and law changes, as well as business trends, to better serve her clients.

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