Checklist Checklist

Category: tax-resolution

  • #40 TAX LEVIES Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    1. A levy is different from a lien.
    2. A levy is an actual legal seizure of property to satisfy tax debt.
    3. Property and property rights can potentially be affected.
    4. Bank accounts can be affected.
    5. Wages can be affected under applicable procedures.
    6. Physical property can potentially be seized.
    7. Ignoring IRS collection notices is dangerous.
    8. Verify the underlying tax assessment.
    9. Verify the balance.
    10. Verify the tax years.
    11. Verify the notice history.
    12. Understand the deadline stated in the notice.
    13. The IRS generally must take specified steps before issuing a levy.
    14. The IRS says it will usually levy only after assessment, notice/demand, failure/refusal to pay, and a final notice/right-to-hearing step.
    15. Exceptions and special circumstances can exist.
    16. A payment arrangement may be an alternative where available.
    17. Collection delay may be possible in qualifying cases.
    18. An Offer in Compromise may be available to qualifying taxpayers.
    19. Penalty relief may sometimes apply.
    20. Missing returns can complicate resolution.
    21. Professional representation does not automatically stop every collection action.
    22. Verify any claim that someone can “stop the IRS” instantly.
    23. Do not pay an unverified company simply because it claims special IRS connections.
    24. Know what happens if the levy proceeds.
    25. The critical question is “What can I do before the next collection action occurs?”

    B. PREMIUM BUYER CHECKLIST

    IMMEDIATE TRIAGE

    ☐ Identify every IRS notice
    ☐ Identify deadline
    ☐ Identify tax years
    ☐ Verify balance
    ☐ Verify payment history
    ☐ Check current collection status
    ☐ Determine whether a levy notice has been issued

    PROPERTY/INCOME AT RISK

    ☐ Bank accounts
    ☐ Wages/income
    ☐ Receivables
    ☐ Vehicles
    ☐ Real estate
    ☐ Business assets
    ☐ Other property interests

    RESOLUTION OPTIONS

    ☐ Full payment
    ☐ Payment plan
    ☐ Offer in Compromise
    ☐ Collection delay
    ☐ Penalty relief
    ☐ Appeal/hearing rights where applicable

    The IRS currently directs taxpayers with tax debt toward several possible resolution paths, including payment plans, Offers in Compromise and collection-delay options depending on eligibility.

    PROFESSIONAL

    ☐ Credentials verified
    ☐ Immediate-action plan
    ☐ Written fee agreement
    ☐ Authorization explained
    ☐ Strategy explained
    ☐ Deadlines documented
    ☐ Failure scenario explained

    FINAL 24-HOUR AUDIT

    ☐ I know what notice I received
    ☐ I know the deadline
    ☐ I know the amount claimed
    ☐ I know the tax years involved
    ☐ I know whether a levy is actually threatened
    ☐ I know which resolution options may apply
    ☐ I have identified the next action

    FINAL QUESTION

    What happens if I do nothing before the deadline on my notice?

  • #39 TAX LIENS Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    1. A tax lien is not the same thing as a tax levy.
    2. A lien represents a legal claim securing the government’s interest in property.
    3. A lien can affect your ability to sell or refinance property.
    4. The existence and status of a lien should be verified.
    5. The amount claimed should be verified.
    6. The tax years involved should be verified.
    7. Filing and payment compliance can matter.
    8. Ignoring IRS correspondence can make matters worse.
    9. Payment arrangements may be available.
    10. A lien does not automatically mean your property has been seized.
    11. A levy is the seizure mechanism.
    12. Property can have complicated ownership structures.
    13. Real estate transactions can be affected.
    14. Credit implications can matter.
    15. Business assets can create additional complexity.
    16. Discharge/subordination/withdrawal questions can be highly situation-specific.
    17. Not every request will qualify.
    18. Professional assistance may be useful for complicated cases.
    19. Fees charged by professionals are separate from the tax debt.
    20. No legitimate professional can guarantee every IRS outcome.
    21. Tax debt may continue accruing interest and penalties.
    22. A proposed solution should be tied to the actual tax account.
    23. You should understand what happens after the proposed resolution.
    24. Do not confuse a professional’s marketing promise with an IRS determination.
    25. The first question is “What exactly is the status of the lien?”

    B. PREMIUM BUYER CHECKLIST

    ☐ Obtain IRS account information
    ☐ Identify tax years
    ☐ Verify balance
    ☐ Verify filing status
    ☐ Verify lien status
    ☐ Identify affected property
    ☐ Identify ownership
    ☐ Determine whether a sale/refinance is planned
    ☐ Review available payment/resolution options
    ☐ Understand professional fee
    ☐ Understand authorization
    ☐ Obtain proposed strategy in writing

    QUESTIONS

    ☐ Is the lien currently active?
    ☐ What property is affected?
    ☐ What would happen if I sold?
    ☐ What would happen if I refinanced?
    ☐ Is there a possible release/withdrawal/subordination/discharge pathway?
    ☐ What eligibility requirements apply?

    FINAL QUESTION

    What specific action am I taking to resolve the underlying tax debt—not merely the paperwork surrounding the lien?

  • #38 IRS TAX PROBLEMS Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    1. Do not assume an IRS notice is harmless.
    2. Do not ignore deadlines.
    3. Verify the amount claimed.
    4. Verify the tax years involved.
    5. Review your IRS account/transcripts.
    6. Determine whether returns are missing.
    7. Determine whether penalties were assessed.
    8. Determine whether interest has accumulated.
    9. Determine whether a lien exists.
    10. Determine whether levy activity is threatened or occurring.
    11. Don’t confuse a lien with a levy.
    12. A lien secures the government’s interest in property.
    13. A levy actually takes property to satisfy the debt.
    14. Payment plans may be available.
    15. An Offer in Compromise may be available to qualifying taxpayers.
    16. Collection may sometimes be temporarily delayed.
    17. Penalty relief may sometimes be available.
    18. Not every taxpayer qualifies for every option.
    19. Missing returns can limit available options.
    20. Interest and penalties may continue.
    21. A tax professional cannot simply erase a legitimate tax liability.
    22. Be skeptical of guaranteed outcomes.
    23. Be skeptical of urgent unsolicited “IRS relief” calls.
    24. Compare professional advice with information available directly from the IRS.
    25. The first step is usually understanding exactly what the IRS says you owe and why.

    B. PREMIUM BUYER CHECKLIST

    ACCOUNT

    ☐ Tax years
    ☐ Balance
    ☐ Tax assessed
    ☐ Penalties
    ☐ Interest
    ☐ Payment history
    ☐ Notices
    ☐ Filing status

    COMPLIANCE

    ☐ All returns filed
    ☐ Missing returns identified
    ☐ Tax records gathered
    ☐ Income records gathered
    ☐ Deductions/supporting documentation gathered

    COLLECTION

    ☐ Collection status
    ☐ Lien status
    ☐ Levy status
    ☐ Payment-plan eligibility
    ☐ Other resolution options

    PROFESSIONAL HELP

    ☐ Credentials
    ☐ Engagement scope
    ☐ Fee
    ☐ Authorization
    ☐ Strategy
    ☐ Timeline
    ☐ Failure scenario

    FINAL AUDIT

    ☐ I know what I owe
    ☐ I know which years are involved
    ☐ I have reviewed my IRS records
    ☐ I understand the next deadline
    ☐ I know what happens if I do nothing
    ☐ I know what options may apply

    FINAL QUESTION

    If I did nothing for the next 90 days, what could happen to my situation?

  • #37 TAX RESOLUTION Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    1. “Tax resolution” is not one single service.
    2. Different tax problems require different solutions.
    3. Filing missing returns may be necessary before some resolution options become available.
    4. Not every taxpayer qualifies for every relief option.
    5. An Offer in Compromise is not automatically available.
    6. A payment plan may be more appropriate than settlement in some circumstances.
    7. Temporary collection delay may be possible in qualifying situations.
    8. Penalty relief has its own eligibility requirements.
    9. A company cannot guarantee IRS acceptance.
    10. “We can settle your IRS debt for pennies on the dollar” can be misleading.
    11. Fees charged by a tax-resolution firm are separate from your IRS liability.
    12. You should understand what the professional is actually doing.
    13. Power-of-attorney/authorization arrangements should be understood.
    14. You should know whether returns are being prepared, amended or merely reviewed.
    15. Unfiled returns can complicate the situation.
    16. IRS notices should never simply be ignored.
    17. Deadlines can matter.
    18. Interest and penalties may continue.
    19. Tax-resolution advertising may simplify complicated eligibility rules.
    20. You should compare the professional’s proposed strategy with options available directly through the IRS.
    21. The IRS itself provides a Tax Debt Help tool for exploring possible options.
    22. You should receive a written fee agreement.
    23. You should know what happens if the proposed resolution fails.
    24. Paying a professional does not transfer ultimate responsibility for understanding your tax situation.
    25. The right question is “What resolution am I actually eligible for?”

    B. PREMIUM BUYER CHECKLIST

    TAX PROBLEM

    ☐ Tax year(s) identified
    ☐ Returns filed/missing
    ☐ Balance verified
    ☐ Penalties
    ☐ Interest
    ☐ Notices
    ☐ Collection status
    ☐ Liens
    ☐ Levies
    ☐ Appeals/disputes

    DOCUMENTS

    ☐ Tax returns
    ☐ IRS notices
    ☐ Account transcripts
    ☐ Payment history
    ☐ Income records
    ☐ Expense records
    ☐ Asset information
    ☐ Debt information

    PROFESSIONAL

    ☐ Credentials verified
    ☐ Experience with your specific issue
    ☐ Scope of engagement
    ☐ Fee structure
    ☐ Refund/cancellation provisions
    ☐ Communication procedures
    ☐ Authorization documents

    RESOLUTION OPTIONS

    Ask which of these are potentially relevant:

    ☐ Full payment
    ☐ Payment plan
    ☐ Offer in Compromise
    ☐ Collection delay
    ☐ Penalty relief
    ☐ Dispute/appeal

    These are among the options the IRS currently identifies for taxpayers who cannot immediately pay their tax debt in full.

    FINAL QUESTION

    What specific IRS mechanism is being pursued, and why do I appear to qualify for it?