Tax Collections
While taxes and death are said to be the only certainties in life, one thing that can be uncertain is how much tax a person may owe. The Internal Revenue Code is overwhelmingly complex, and the Internal Revenue Service’s own regulations are even more complex. All of this can lead to questions involving tax collections.
You may pay taxes and receive a notice from the IRS indicating you underpaid your taxes. You may have not paid some type of tax, not believing you were subject to that particular tax. Mistake, error or inadvertence, it is likely that the Internal Revenue Service will come looking for what they believe to be delinquent taxes.
Don’t Delay Dealing With IRS Collections Letters
If you have received a letter from the IRS, there are likely to be deadlines and time constraints. No matter the circumstance, we can help. At Gordon & Alvestad, PLLC, our attorney has decades of experience working with the tax code and dealing with the IRS on behalf of clients in Washington.
If you fail to take prompt action, the IRS will move forward with their collection powers, which can include the draconian authority to impose a tax levy that effectively can seize your or your businesses’ assets, including bank accounts.
We Can Help You With The IRS
Don’t wait. After you open that letter, contact us as soon as possible. If you owe tax, there are likely to be interest and penalties accruing. Our experienced tax lawyer handles the full range of tax controversies, including:
- Representation in IRS tax court
- Notice of intent to levy
- Notice of levy
- 30-day letters
- Statutory notices of deficiency
- Offers in compromise
Answers To Your Tax Collections Questions
It’s essential that you have accurate, timely information on federal tax collection by the IRS. Our attorney has provided answers to some common questions we hear frequently in the office of Gordon & Alvestad, PLLC.
What should I do if the IRS is trying to collect unpaid taxes?
The most important step is to make sure you have filed all of your required tax returns from previous years. The IRS will not even talk to you about a payment plan or a settlement until they know exactly how much you owe for every year. Once you are caught up on filing, you have several paths forward. If you owe less than $50,000, you can usually set up a “Simple Payment Plan” through the IRS website. This is a great option because it stops the government from taking your property and doesn’t require you to fill out complicated forms about your monthly spending. If you owe more, you may need to provide a full financial report to show what you can realistically afford to pay each month.
Can the IRS seize my assets or wages?
Yes, the IRS has the power to take money directly from your bank account or your paycheck, but they must follow strict rules before doing so. They are required to send you a “Final Notice of Intent to Levy” at least 30 days before they act, which gives you a chance to ask for a hearing.
It is also a common myth that the IRS can take your whole paycheck. By law, they must leave you with a “protected amount” to cover your basic needs like rent and food. For 2026, this amount has been adjusted for inflation. For example, a married person with two children might keep over $1,600 of their bi-weekly pay, even if the IRS is garnishing the rest.
Can I negotiate my tax debt?
You can negotiate, but the IRS is not like a credit card company; they won’t settle just because you ask. They use a formula called “Reasonable Collection Potential” to decide if they will accept a smaller amount. This formula looks at your bank accounts, your car’s value, and how much money you have left over after paying for “allowed” living expenses like your mortgage or health care. A tax collections attorney can help you explore options with tax debt settlement and can help you determine if you qualify for an Offer in Compromise, which can legally wipe away your debt for a fraction of what you owe.
Contact Us Today!
Our lawyer can help you or your business deal with any issues involving tax collections in the Tacoma area. Use our online contact form to schedule a consultation or call our Gig Harbor office at 253-666-9219.
