May 27, 2022 – San Juan, Puerto Rico. If you have an IRS or local tax balance and do not pay or respond to setup a resolution, the IRS and many states can pursue enforced collections actions that make your life more difficult. Here are some of those negative consequences and why you need to address tax issues earlier rather than later:
- Paycheck Reduction
The IRS and states can dock your wages so that you receive less than usual in terms of your paycheck at work. They can also issue 1099 levies for contractors who have clients that need to pay them.. With no action, the IRS and many states will continue to do so until the taxes are paid off or the time clock for collecting the tax expires (generally with the IRS it is ten years). Fortunately, our trusted tax firm can remove or reduce it in most cases. - Property Seizure
Generally rarer, the IRS and many states can seize property. It can includes houses, cars, boats, land and other assets to satisfy past due tax liabilities. Moreover, they can also levy retirement accounts, rental income, life insurance, and more. - Bank Levy
The IRS and many states can also issue a bank levy. As a result, funds are frozen, and you have 21 days until the IRS takes the money. Most states issue “standing” bank levies which means new deposits are affected. An IRS bank levy that the IRS issues will not affect bank deposits after the fact, however, the IRS can initiate another bank levy again. - Tax Liens
The IRS and States can also file a tax lien which becomes public and hurts your ability to borrow.
If this is the scenario for your business, you need to start the Tax Resolution Process with your tax consultant. Your tax professional will listen to your tax problems, understand your situation, your goals, and more. They will review tax issues, assess financials, and determine your possible options. Once you are ready to start the Investigation process the IRS or State communication begins, financial situation documented, various tax transcripts reviewed and tax options are presented to the client. At this point, there is 100% certainty as to what tax options are available and the associated cost of pursuing them. You can decide to tackle the issues by hiring a tax professional to get them into compliance with the IRS or State. With a tax professional, an optimal tax resolution is obtained and future guidance will be provided. Don’t have a Tax Consultant? We can assist you and your business. At Gierbolini consulting you can request a free tax relief consultation to receive a free consultation from industry experts.
We are a full-service CPA and Law firm licensed in Puerto Rico. We offer a broad range of services for business owners, executives, and independent professionals. We are affordable, experienced, and friendly. Call Us Today! 787-705-6120