There are plenty of things you can control when it comes to staying out of trouble with the IRS, the most significant being… paying what you owe.
But if you don’t (for whatever reason), you’ll find there are suddenly a plethora of things out of your control. One of the biggest ones…
The time it takes to get issues resolved.
A significant challenge in any tax resolution scenario or IRS audit for Mount Vernon owers is simply to wait, and the IRS tends to take its sweet time to get things done.
Tax audits, liens, or even wage garnishments aren’t all that rare; maybe you’ve already experienced one (or more). But that first time waiting for a response from the IRS can feel like an eternity. While an IRS audit may typically conclude within 3 to 9 months, other processes can stretch on for years. The complexity of the issue, your cooperation, and legislative changes all come into play.
One thing you don’t want is your IRS conflict looming over you without an end in sight. So, like I do with my other Westchester County clients, let mehelp you set proper expectations on the timing:
- IRS audit. There are actually 3 different types of IRS audit, each one with its specific timeline. Mail audits typically take 3-6 months to get wrapped up (depending on how quickly you respond to the audit letter). It can however, take the IRS up to 7 months to notify you of this audit after you file. Office audits (conducted at an IRS office) will generally take around 3-6 months as well, while field audits (where the IRS meets you at your home or work) can take a year or more.
- Penalty abatement. IRS penalties, particularly for late filing or payment, are common. Obtaining a penalty abatement, or removal, often requires demonstrating reasonable cause or having a clean tax history. Resolving penalties through phone inquiries can be quicker, but written requests typically take 3-4 months for reasonable cause and 2-3 months for first-time abatement. If an abatement is denied, appealing the decision might be necessary.
- Payment plans. Setting up a payment plan with the IRS will probably be the fastest tax experience you’ll have (funny how quickly the IRS can work when it means they get paid). Simple plans, like extensions or installment agreements for smaller debts, can be established relatively quickly (as little as 15 minutes online or an hour by phone). However, more complex arrangements, such as those for larger debts or individuals facing financial hardship, demand extensive documentation and can take weeks or months to finalize.
- Collection action. The IRS may also take collection actions, such as levies or wage garnishments. It is rare for the IRS to seize your property to settle your debt, but when they do come to that decision, things start to move quite fast. You’ll have plenty of chances to avoid it, because the IRS will generally send a few notices reminding you about your overdue taxes. If you don’t pay the tax or respond to negotiate a payment plan, the IRS will send a final Notice of Intent to Levy. If you fail to respond to that, you’ll have 30 days to respond, appeal, or reach an agreement before your property is seized.
Dealing with the IRS takes patience and perseverance. Understanding the timelines for these things puts you a little more back in the driver’s seat.
If you’re not sure about timelines for your situation, or you just want figure out the best ways to tackle your tax problems, we are happy to help (no matter how complex):
calendly.com/l-karam/prospect-schedule
Here to help you manage your expectations,
Lynn Karam