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san jose tax lawyerTaxpayers have a number of options for responding to attempts by the IRS to collect taxes. If the IRS conducts a tax audit and determines that there is a tax deficiency, it may perform a tax assessment and take action to collect the amount owed. A taxpayer can appeal the IRS’s determinations by filing a petition in U.S. Tax Court, and after a petition has been filed, the IRS is prohibited from taking action to perform a tax assessment or collect taxes while the matter wends its way through the Tax Court process. However the U.S. Tax Court is currently experiencing delays, and this may result in complications and difficulties for some taxpayers.

Responding to Tax Court Delays and Premature Tax Assessments

Typically, the U.S. Tax Court receives 23,000 to 26,000 petitions from taxpayers each year. As of July 23, 2021, the Tax Court court has already received more than 24,000 petitions this year, and this has affected its ability to process cases. Because of the large number of petitions, there may be a delay between when a person files a petition with the Tax Court and when the Tax Court serves notice of a petition to the IRS.

A taxpayer has a 90-day window to file a Tax Court petition after receiving a Notice of Deficiency from the IRS. Normally, the IRS will not perform a tax assessment or begin the process of collecting taxes for 15 days after the end of this 90-day period. This allows time for the Tax Court to process a petition and serve notice to the IRS. However, due to the current backlog of petitions, the Tax Court has been taking around 75 days to process petitions. This means that unless a person filed a petition near the beginning of the 90-day window, the IRS is likely to perform a premature tax assessment.

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San Jose, CA tax appeals lawyer for IRS assessmentMany taxpayers are understandably concerned when they receive a notification from the IRS stating that they owe taxes. If a taxpayer does not respond to a Statutory Notice of Deficiency, the IRS may perform a tax assessment and take action to collect the amount owed. A taxpayer may appeal the tax deficiency by filing a petition in Tax Court, but in some cases, a petition may not be received in time, resulting in a premature tax assessment.

Time Limits for Tax Assessments

After receiving a Notice of Deficiency, a taxpayer has 90 days to file a petition in Tax Court. After the end of this 90-day period, the IRS has 60 days to perform a tax assessment. The IRS may then take a number of different types of actions to collect the amount owed by the taxpayer, including issuing levies to seize a taxpayer’s assets or garnish his/her wages, placing tax liens on a taxpayer’s property, or offsetting a taxpayer’s tax refunds. 

While the IRS is not allowed to make an assessment during an open Tax Court case, it may begin to do so after the end of the 90-day period. In many cases, premature tax assessment occurs because the IRS has not received notification that a taxpayer has filed a petition in Tax Court. Since the 90-day deadline applies to the date that a petition is mailed, if a petition is sent close to the deadline, it may not be received until several days or even multiple weeks after the deadline. If a tax assessment is done even after a taxpayer has filed a petition before the deadline, the taxpayer may file a motion to prevent the assessment or stop IRS collection actions.

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: San Jose tax relief lawyerWhen an individual fails to pay his or her taxes, the Internal Revenue Service (IRS) has the authority to collect taxes, penalties, and interest by garnishing the individual’s wages. Typically, creditors are required to get a judgment before they can garnish wages, but the IRS does not need to meet this requirement. Furthermore, the IRS is often authorized to garnish a much greater amount of a person’s wages than other creditors can take. The best way to avoid wage garnishment is to prevent collection actions in the first place. However, this is not always possible. Fortunately, there are still actions you can take that may be able to stop wage garnishment.

Responding to a Collection Due Process Notice

When tax debt goes unpaid, the IRS may issue you a Collection Due Process notice. This notice is to inform you that your future wages will be intercepted for the purpose of debt repayment. You then have 30 days to request a hearing and formally respond to the notice. The most common ways to prevent IRS collection actions such as wage garnishment include:

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tax appeal process, San Jose tax law attorney, tax appeal request, written protest, violate tax lawsPeople and organizations can violate tax laws in the United States in a variety of ways, thus leading to disputes with the Internal Revenue Service (IRS) regarding tax assessments, collections, or other issues. After the IRS makes a decision following an audit or sends a notice of a collection action, taxpayers may be able to contest the decision through the IRS Office of Appeals. One method to begin the tax appeal process is by filing a written protest.

Requirements for a Written Protest

When the IRS makes a decision about the taxes a person owes or the methods of collecting payments, it will send a notice to the taxpayer. The taxpayer can then file a formal written protest that should include the following information:

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IRS collection action, owe taxes, San Jose tax appeals attorney, IRS issues, tax lienIf, when filing your tax return, you owe taxes to the Internal Revenue Service (IRS) and you do not pay them at that time, the IRS will bill you for the taxes that are due. They will send at least two notices. Additionally, if taxes are not paid after you receive a final notice, the IRS will begin to take collection actions. These actions can include applying the amount of your future tax refunds to the amount due, or seizing your property and financial assets.

If you are unable to pay your taxes, you are likely already having financial difficulties. Moreover, if you receive a notice that the IRS plans to initiate a collection action, you may worry about the possible consequences. In these cases, an experienced tax attorney can help you appeal the IRS’s decision through one of the following procedures.

Collection Due Process (CDP)

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