Thursday, January 27, 2011
FAQ IRS Collections-First in a Series: What are the different ways that I can resolve unpaid taxes? Answer #1
1) Short-term 30 to 90 day extensions of time to pay
Short-term 30 to 90 day extensions of time to pay can be granted by the IRS by phone. However, do not necessarily call immediately upon receiving your FIRST notice or letter. The IRS sends a series of notices, and calling the IRS after the first notice can literally accelerate the collection/enforcement process. (See question three below for the series of IRS notices.) Waiting to receive the full series of notices and calling only after the Certified Mailed notice could get you as much as three to six months before you request a short-term extension. However, if the Certified notice has been sent and you ask for a short-term extension, but do pay by the extension date, the IRS can not levy banks, wages, etc. Therefore, do NOT make ANY commitments that you cannot keep! If you cannot keep ANY commitment to the IRS by a given deadline date, call the IRS BEFORE the commitment date with an alternative plan. Perhaps you can send a partial payment and the balance in another 30 days. You must keep in mind that penalties and interest continue to accrue until the taxes are paid in full.
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