When you take action before the deadline your attorney can file a request for a Collection Due Process hearing. The good news is that this stops all collection activity. The clock stops running on the statute of limitations and your attorney can propose a variety of other courses to resolve the tax issue including:
- Collection alternatives, such as an Offer in Compromise or an Installment Agreement
- Subordination or discharge of the Federal Tax Lien
- Withdrawal of Notice of Federal Tax Lien
- Innocent Spouse Relief
- The existence of the amount of tax (only if taxpayer did not receive a notice of deficiency or otherwise was not afforded an opportunity to dispute the tax liability)
What Happens When You Respond After The Deadline You really don’t want to find out. But, for starters, the only thing the attorney can do is to file a request for an Equivalency Hearing. Unlike with the CDP hearing, there is no suspension of collection activity and the clock continues to run on the statute of limitations. The attorney cannot propose any other course of action. In addition, the fear, anxiety and stress you already experience will multiply. The IRS has the legal right to freeze and seize everything you own. The IRS Has Given You Sufficient Notice Don’t blow your chance to make things right. However you got into tax troubles, you cannot deny that they exist. You can, however, take a deep breath and decide to face the Final Notice of Intent to Levy with all the integrity you can muster. In the long run you will look back and know that meeting the 30-day deadline was the best decision.