IRS Jeopardy Assessment: Can the IRS Levy for Owed Money?

Do You Owe The IRS and Are Afraid of an IRS Jeopardy Assessment?

IRS Jeopardy Tax Assessment Explained

An IRS jeopardy assessment is a legal action taken by the Internal Revenue Service (IRS) to immediately assess and collect taxes when there is a belief that the taxpayer's actions jeopardize the collection of tax liabilities.

It is typically used in situations where there is a significant risk of dissipation of assets or attempts to evade payment.

The IRS can assess taxes without following the normal procedures to ensure prompt collection and protect the government's interest.

What is an IRS Jeopardy assessment?

An IRS Jeopardy Assessment is a measure taken by the Internal Revenue Service when it believes that the collection of tax revenue is in imminent danger because of the taxpayer's actions or potential actions. This allows the IRS to immediately assess and collect taxes even if the taxpayer has not yet filed a return. The action is generally considered extreme and is reserved for situations where the IRS believes that waiting for the taxpayer to file a return or go through the usual collection process would endanger the government's ability to collect the tax.

Possible IRS Tax Resolution Strategies to Set Your Mind at Ease

Even for honest taxpayers, the IRS can be frightening. Unlike most other government agencies, it has the power to attach your wages, freeze your bank account and even confiscate your property, and that is enough to send a chill up the spine of any taxpayer.

If you receive a letter from the IRS saying that you owe additional taxes, it is important not to panic. It may be a frightening situation, but there are things you can do to settle your tax debt and get back on the good side of the agency.

Taxpayers have options when resolving tax disputes and paying additional taxes due and knowing what those options are can set your mind at ease.

As an expert Tax Resolution Firm, we encourage all readers facing a tax problem to contact us for a free consultation!

Regardless, it’s important to an educated taxpayer so here are three strategies you can use to resolve your tax debt and get on with the rest of your life. Not all of these options will be right for everyone, but it is important to be informed as a taxpayer.

The IRS may be frightening, but they can be surprisingly reasonable - if you know what to say and how to approach the situation.

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Review the Amount Owed to the IRS and Your Tax Return in Question

If the IRS says you owe money, you should not assume they are right. The tax agency makes mistakes, as do tax prepares and ordinary taxpayers.

Whether you filed your taxes on your own or hired someone else to do it for you, it is important to examine your return and compare what you find with what they are claiming.

It pays to seek professional help for this tax review, even if you filed your own taxes.

A professional with IRS experience may uncover errors and inconsistencies you would have missed on your own, and that could end up saving you money.

There is no guarantee this review will eliminate the extra taxes they say you owe, but it never hurts to be sure. There have been many cases in which taxpayers who thought they owed money to the IRS ended up owing nothing - or even being owed a refund from the IRS.

Set Up an IRS Payment Plan

Getting a notice of additional tax due from the IRS is frightening if you cannot afford to pay what the agency says you owe. Keep in mind, however, that you do not have to pay the bill all at once.

The IRS is often willing to set up payment plans with taxpayers, and those payment plans could make paying what you owe easier and less stressful. Once again, seek professional help and guidance here - the IRS can drive a hard bargain, and you do not want to end up with a payment plan you cannot afford.

If you fall behind on the payment plan you agreed to, you could be subject to additional enforcement action, including the tax agency garnering your paycheck or even freezing your bank accounts. Getting the help of a tax resolution professional upfront can help you avoid these serious consequences.

Explore an Offer in Compromise Settlement

If you truly cannot pay the money the IRS claims you owe, you may work out a smaller payment. The IRS may not advertise this program, but the tax agency is often willing to work with taxpayers by accepting lesser amounts if those taxpayers have few assets and a limited income. Sometimes these can be for a fraction of what’s owed if you qualify. We offer a free no obligation consultation to find out if you qualify.

If you plan to explore this last option, I advise you to work with a tax resolution expert. These compromise offers can be complicated, with legalese and language that can be difficult to understand.

You do not want to make a misstep here, and you want to ensure that paying the compromised account will result in a complete settlement of your tax bill.

Few things are as frightening as getting a letter from the IRS. That official-looking letterhead is bad enough, but what the letter says is even worse.

If you receive such a letter, you need to take positive steps right away. Ignoring the situation will not make it go away, and the sooner you start exploring your tax resolution options the better off you will be.

If you want the help of an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to resolve your tax problem.

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About Keith L Jones, CPA TheCPATaxProblemSolver

Keith L. Jones, CPA - TheCPATaxProblemSolver offers specialized Tax Resolution Services designed to assist businesses and individuals in overcoming complex tax challenges. With extensive experience in tax problem resolution, Keith L. Jones provides personalized strategies and solutions to alleviate tax burdens. Services include personalized tax consultation, tax debt relief strategies, expert audit representation, penalty abatement assistance, innocent spouse relief support, tax lien and levy resolution, offer in compromise guidance, and proactive tax planning and compliance. By choosing Keith L. Jones, CPA - TheCPATaxProblemSolver, clients receive dedicated support, reliable guidance, and expert representation to achieve financial peace of mind. Contact Keith L. Jones today to schedule a consultation and take the first step towards effective tax issue resolution.