Collection Process

At Murray Moyer, we provide legal assistance to individuals and businesses facing collection actions from the Internal Revenue Service (IRS) and the North Carolina Department of Revenue (NCDOR).

Our experienced tax lawyers are adept at handling both IRS and NCDOR collection processes, equipped to guide you through these challenging times with strategic advice and representation.

Understanding the Collection Process

When tax liabilities remain unpaid, the IRS and NCDOR initiate a collection process that begins with sending notices to the taxpayer.

Ignoring these notices can lead to more aggressive enforcement actions, including liens, levies, and garnishments, which can disrupt your business, affect your employment, and damage your credit rating.

IRS and NCDOR Enforced Collection Actions

  • Notice of Federal Tax Lien (NFTL): A legal claim against your property for unpaid tax debt.
  • Levy, Seizure, and Garnishment: The IRS can seize property, including homes and cars, and garnish wages or other income to satisfy the tax debt.
  • Offsetting Tax Refunds: The IRS may apply federal and state tax refunds towards your unpaid tax liabilities.

Taxpayer Options to Address Collection Actions

Option 1: Payment in Full

The simplest way to resolve tax debt is to pay the full amount owed. This may involve borrowing funds or using credit cards, as the interest and penalties from the tax debt can often exceed those of loans or credit cards.

Option 2: Request an Extension

If immediate full payment is not feasible, the IRS may grant an extension, allowing you additional time to gather the necessary funds.

Option 3: Currently Not Collectible Status

If payment would cause financial hardship, the IRS might place you in a “currently not collectible” status, temporarily halting collection actions. However, interest and penalties continue to accrue.

Option 4: Installment Agreement

For those unable to pay in full but able to make monthly payments, an installment agreement is a viable option. This agreement includes a setup fee and interest penalties until the debt is paid off.

Option 5: Offer in Compromise

This option allows taxpayers with limited assets and income to settle their tax debt for less than the full amount owed, depending on their ability to pay.

Option 6: Bankruptcy

In some cases, filing for bankruptcy may be a way to discharge certain tax debts, subject to specific conditions and limitations under the Bankruptcy Code.

How Murray Moyer Can Help

Our team at Murray Moyer is well-versed in the nuances of IRS and NCDOR collection processes. We offer personalized legal strategies to protect your interests, assets, and financial well-being. Our services include:

  • Negotiating with the IRS and NCDOR on your behalf
  • Assisting with the preparation and submission of requests for installment agreements, offers in compromise, and currently not collectible status
  • Representing you in collection due process hearings
  • Advising on bankruptcy filings as a method to resolve tax debt

Facing collection actions from the IRS and NCDOR can be overwhelming, but you don’t have to navigate this path alone. Our experienced tax attorneys are here to provide you with the guidance and representation you need to resolve your tax issues effectively.

Contact Murray Moyer today to discuss your situation and explore your options.