Paying taxes is mandatory for citizens, and being penalized for not paying them correctly is one of the biggest fears for Americans. The Internal Revenue Service (IRS) is responsible for notifying taxpayers of late fees or penalties for missing deadlines. One of the most critical steps in this process is the notification of the “Final Notice of Intent to Seize and Your Right to a Hearing,” a document that warns of the possibility that the IRS will take drastic measures to recover tax debt. The fact is, as in life, avoiding a problem doesn’t mean it disappears, so ignoring an IRS notice can have serious consequences, primarily financial.
The IRS also emphasizes the importance of responding if required
The IRS, through its website, outlines the possible reasons why it might send a notification letter. These reasons include: if the person has an outstanding balance; if the refund amount has changed; if the IRS has a question about the return; if identity verification is necessary; if the IRS needs to change or correct the return; or if the IRS itself is slow in processing a return. The IRS also emphasizes the importance of responding if required. “Review it carefully and keep it for your records. If we ask you to respond, act by the deadline,” the Internal Revenue Service website states.
This notice is sent at least 30 days before the IRS can begin seizing the taxpayer’s assets
It’s especially important to note that when the IRS issues the Final Notice of Intent to Seize, it cannot be avoided. This notice is sent when a taxpayer has an outstanding tax debt and hasn’t responded to previous notices from the agency. This letter is important because if you don’t respond in time, the debt or penalties can continue to increase. This notice is sent at least 30 days before the IRS can begin seizing the taxpayer’s assets.
The notice mentioned above is a formal warning that the tax collection agency intends to take legal action
As the IRS advises, even if you can’t pay the full amount you owe, pay by the due date. This can reduce penalties and interest. The notice mentioned above is a formal warning that the tax collection agency intends to take legal action to recover the debt, which could involve seizing property, bank accounts, wages, or even Social Security benefits.
It’s also important to keep all your personal information up to date. The IRS has confirmed that taxpayers who don’t update their tax domicile or who never report a change of address face a direct risk of the agency initiating collection proceedings without first receiving warning letters. This means that taxpayers who haven’t completed the address update process may miss the final notice before a levy, known as the Final Notice of Intent to Levy, which authorizes the IRS to garnish the person’s wages, property, or benefits. It’s important to understand that this notice doesn’t mean the levy will be implemented immediately, but it is a sign that the process is underway if no action is taken to resolve the debt.
Ignoring IRS letters can only have negative consequences for taxpayers
Therefore, ignoring IRS letters can only have negative consequences for taxpayers. The collection process begins when the IRS sends a series of informational letters, and if no response is received, it moves to a much stricter process. If the IRS still doesn’t receive a response, it is authorized to take measures such as freezing the taxpayer’s bank accounts; seizing available funds in financial institutions; withholding wages through the employer; seizing assets or placing a lien on property; or automatically deducting future refunds. Therefore, it is important to always keep your accounts in order.