What exactly is enforced collections?
Enforced collections is when the government has exhausted their efforts to get a taxpayer to voluntarily pay the taxes that they owe. When this happens the government will go into enforced collections mode. This means levies, garnishments, and liens. It is not where you want to be with the government. The government will work with you to pay your taxes based on your current financial situation. Thus, there is rarely a good reason to get into a situation whereby the government has to take extreme measures to collect the tax.
Garnishments, Levies and liens can be an embarrassment that you never have to face. All you need to do is cooperate and work out a plan. Remember this plan will be based on your current wherewithal to pay.
What are Your Options?
Your easiest option or the option to use to buy time is to enter into an installment arrangement. This can also be done while you are doing something else like an Offer in Compromise. This will stop enforced collection and allow you to have time put other alternatives together while not being under the constant threat of enforced collections.
You can also enter into an Offer in Compromise to pay less than you actually owe. This is based on your current financial situation and ability to pay. We analyze our clients current financial situation and present it in the best light possible to the government.
Another option is some circumstances is to put the client on uncollectable status. No further collection efforts are made while the taxpayer is on uncollectable status, but interest and penalties continues to accrue. In certain circumstances this can work very well.
Finally, and usually the last step we consider is bankruptcy. Believe it or not, there are a number of taxes that can be discharged in bankruptcy.
A combination of the above techniques may be used on any given client. Each case must be reviewed independently to determine the best course of action. This is why we offer a free initial consultation. A no risk way to have a tax professional review your situation.