If you continue to carry a balance due on your Internal Revenue Service account after having received notices number 501 and 503, the Internal Revenue Service will begin getting aggressive about your back taxes. They will start by issuing notice number 504, which is your final notice of a balance due.
This final notice almost always includes information on intent to levy a tax refund. At this stage, the Internal Revenue Service will begin actions like a levy of your assets and any state tax refunds, as well as sending you a Notice of Federal Tax Lien. The process to garner wages might begin now, as well.
If you want to avoid punitive measures from the Internal Revenue Service, you must respond to the letter of final notice. The best time to make this response is just as soon as you receive the letter. Any more waiting around will guarantee a tax levy or lien. The Internal Revenue Service now regards you as an uncooperative taxpayer, and you have absolutely no room to bargain with them. The best way to settle this and avoid punishing fines, penalties, and interest is to remit the amount they want, in full, immediately.
Even if you cannot afford to pay the amount of money the Internal Revenue Service is asking, it is imperative that you contact them right away and show that you are at least, finally, responding to their balance due notice.
You will have no other choice now than to work this out with the Internal Revenue Service. Any more delaying tactics will place your property, tax refunds, or wages in jeopardy. It might seem like there is no way to turn at this point, but waiting to figure something out is not going to do anything except force the Internal Revenue Service to take extreme action.
If you don’t have the cash to pay them in full, perhaps you can pay by credit card or borrow the money. Your very best option at this point is full remittance, if at all possible.
The only other decision you can make is to hire a tax resolution firm and see what they might be able to work out on your behalf. You will need to put them on the case immediately to stall any collection action by the Internal Revenue Service and you are going to have to come up with some money no matter what you decide.