Tax Problems: Levels of Urgency

If you are like most WATAX clients, you or your business has either unfiled tax returns or unpaid taxes to the IRS. While the occasionally aggressive IRS is a cause of urgency, there are often other adult real-world triggers that bring people to tax problem solvers like WATAX.

Here is a list of things in order of urgency (but of course this list is pretty subjective as everybody’s life is different):

Most Urgent

• IRS Agent assigned locally. These people actually issue levies, whacking bank accounts and wages.
• Getting financing for your business or refinancing home. Most lenders want to see business and individual returns completed.
• Buying a home. Lenders want to see at the very least your last three individual (or business tax returns).

Less Urgent

IRS sending bills with 1-800 #’s from ACS. - The IRS very rarely levies on ACS letters. If you are getting these bills, you should make sure all of your tax returns are done and if possible current taxes are paid. That will put you in a good position, should the IRS escalate in the future.

Not Urgent

Private tax collectors for the IRS. - You can ignore most of these folks who send letters or call: IRS list of Private Tax Collectors. Maybe they might flip case to IRS, but not normally. These people have zero power to levy so, ignore.

Hard to quantify

There’s nothing like your conscience to bug you about a tax debt or lack of tax compliance. Shame and worry can rent a lot of space in one’s head. So, for some, this is the most urgent. Time to get into action!