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An IRS tax lien is a legal claim the government places on a taxpayer’s property as a result of unpaid taxes. It is a way for the IRS to secure the amount owed by the taxpayer and ensure that the government will receive payment. The lien affects the taxpayer’s credit rating and ability to buy or sell any type of property. It remains in place until the taxes owed are paid, although the taxpayer may be able to negotiate a release of the lien under certain circumstances.

An IRS bank levy is a legal action the government takes to seize funds from a taxpayer’s bank account to pay off unpaid taxes. The IRS may issue a bank levy if the taxpayer fails to respond to prior notices and pay their outstanding tax debt. Once funds are frozen or seized, the taxpayer has a limited amount of time to address the issue before the funds are transferred to the government to satisfy the debt. It can be devastating to those who depend on those funds for daily living expenses.

An IRS offer in compromise (OIC) is a program that allows some taxpayers to settle their tax debt for less than the full amount owed. The IRS will consider reducing the amount owed if there is doubt that the taxpayer can pay the full amount, or if paying the full amount would cause a financial hardship. The taxpayer would need to make an offer to the IRS in writing, and provide detailed financial information to support their offer. If the IRS accepts the offer, the taxpayer will be able to pay off their tax debt for less than the full amount owed.

An IRS wage garnishment is a legal action that allows the government to deduct money from a taxpayer’s paycheck to pay off outstanding tax debt. The IRS may issue a wage garnishment if a taxpayer has failed to respond to prior notices or establish a payment plan. The garnishment remains in effect until the taxpayer has paid off their debt or reaches a payment agreement with the IRS. It can be financially devastating to the taxpayer, who may lose a significant portion of their income.

An IRS installment agreement is a program that allows taxpayers to pay their tax debt in monthly installments over time, rather than in a lump sum. The IRS will consider installment agreements for taxpayers who cannot afford to pay their outstanding tax debt in full, but can make regular payments over time. The taxpayer needs to make a request to the IRS in writing and provide detailed financial information to support their request. The IRS will then review the request and make a determination on whether to approve the installment agreement.

Unfiled tax returns are income tax returns that taxpayers are required to file each year but have failed to do so. Unfiled tax returns deprive the government of necessary income tax revenue, and can result in significant penalties, fines, and even criminal charges, in some cases. Taxpayers who have unfiled tax returns should file them as soon as possible to avoid further penalties, and consider seeking out professional tax assistance or legal counsel if necessary.

An IRS penalty abatement is a program that allows some taxpayers to request forgiveness of some or all of the penalties associated with their tax debt. The IRS may grant penalty abatement under certain circumstances, such as when there was reasonable cause for the taxpayer’s failure to pay their taxes as well as other factors. The taxpayer needs to make a request to the IRS and support their request with documentation and evidence that the penalties should be forgiven.

An IRS audit is a review of a taxpayer’s tax return and financial records to determine whether they have accurately reported their income and paid the appropriate amount of tax. The audit can be triggered by a variety of factors, including discrepancies on the tax return or information matching errors. The taxpayer may be asked to provide additional documentation or answer questions about their return. It is important for taxpayers to maintain accurate and complete records to help support their tax return and address any issues that may arise in an audit.

An IRS seizure is a legal action that allows the government to seize a taxpayer’s property, such as real estate or personal assets, to satisfy unpaid tax debt. The IRS can use a seizure as a last resort if other collection efforts, such as liens or levies, have been unsuccessful. The taxpayer is typically given notice of the seizure and an opportunity to appeal the action. It can be devastating to the taxpayer, who may lose significant assets and property.

An IRS innocent spouse claim is a request for relief from joint tax liabilities for a spouse who believes they should not be held responsible for unpaid taxes. Innocent spouse relief may be granted to spouses who did not know, or had no reason to know, that their spouse failed to report income or otherwise committed tax fraud. The taxpayer is required to file a separate request for relief and provide supporting evidence to the IRS. The IRS will review the request and make a determination on whether to grant relief.

An IRS injured spouse claim is a request for relief from the offset of a tax refund to satisfy a spouse’s debts, such as student loans, child support, or unpaid taxes. When a taxpayer is due a refund but has a spouse with outstanding debts, the IRS can offset the refund to satisfy those debts. However, if the taxpayer can prove that they are the injured spouse, and their portion of the refund is not owed to the government, they may be entitled to receive their portion of the refund. The taxpayer should file an injured spouse claim to request relief.

An IRS Currently Not Collectible (CNC) status is a temporary agreement between the taxpayer and the IRS stating that the taxpayer cannot afford to pay their tax debt at this time. When the taxpayer enters into CNC status, the IRS will suspend any collections activities, such as wage garnishments, seizures, and liens, but interest and penalties will continue to accrue. The taxpayer needs to provide detailed financial information to support their claims of financial hardship, and the IRS will review this information before granting CNC status.

An IRS Partial Payment Installment Agreement (PPIA) is a payment plan that allows taxpayers to pay their tax debt in installments over a long period. It is ideal for individuals who are unable to pay their taxes in full or who cannot qualify for an Offer in Compromise (OIC). Under this arrangement, taxpayers make minimal monthly payments that are accepted by the IRS, and any remaining balance is forgiven if the statute of limitations expires. The PPIA is an effective solution to address tax debts without resorting to more drastic measures like bankruptcy or liens.