It can be overwhelming to receive a notice from the Internal Revenue Service (IRS), no matter the topic. Many taxpayers put off reading or even opening these notices, but this is never a good idea. You should know what happens when you ignore IRS notices in Florida.
There are several potential consequences that depend on the notice you ignore, and can include collection actions, higher tax payments, or other serious consequences. You should always read and review a letter you receive from the IRS and respond quickly.
What Are Common Reasons for IRS Notices?
There are numerous reasons that the IRS sends taxpayers notices, including:
- When the agency finds a discrepancy, such as your income not matching information from other parties
- To clarify the other information you provided
- If you didn’t file a return
- To propose changes to your tax return
- To request information for a tax audit
- To request payment for underpaid or unpaid taxes
- To request identity verification to prevent fraud or identity theft
The notice you receive will tell you what actions you can and should take. While not all IRS notices require a response, many do.
What Are the Consequences of Ignoring IRS Notices in Florida?
If you ignore an IRS notice in Florida, especially one that requests a response, there can be numerous potential consequences. You will also keep receiving notices in certain cases. The consequences of ignoring IRS notices include:
- Additional penalties or interest: Your notice may be a tax bill. If you ignore it and don’t pay your debt, it will accrue interest and several penalties. This increases the total amount of debt you owe over time. In fiscal year 2024, the IRS assessed 7 million civil penalties that totaled $84.1 billion.
- Changes to your tax return: A notice may be the IRS asking you to prove certain deductions or credits on your taxes, or requesting information to clarify other parts of your return. If you don’t provide that information, the IRS may determine that you do not qualify for the credit or deduction, or take other action to increase the taxes you owe. The agency recommended $36.8 billion in additional taxes and assessments in 2024.
IRS Collection Actions
After several ignored tax bills, the IRS will likely begin collection actions on your unpaid debt. These actions include:
Wage Garnishment
Wage garnishment occurs when the IRS takes a portion of your paycheck each pay period to cover your debt until the debt is fully repaid. It is one form of levy the IRS uses. The IRS contacts your employer and requires them to remove a set portion of your pay and send it to the IRS.
Unlike other creditors, the IRS doesn’t need court approval to implement a wage garnishment. A garnishment can affect many types of income, including hourly wages, a salary, governmental benefits, and periodic retirement payments.
Tax Liens
A tax lien is a claim on your property. The IRS can put a lien on your home, vehicle, land, additional real property, and other personal property. This legal claim keeps that property as collateral that the IRS can seize if you don’t pay your debt.
The IRS filed 196,996 federal tax lien notices in fiscal year 2024, according to the 2024 IRS Data Book. Because tax liens don’t involve the immediate seizure of property, some taxpayers don’t take them seriously. They can have significant consequences on your credit, your assets, and your business. If you don’t take action, you lose the property.
Bank Levies
A bank levy involves the seizure of funds directly from your bank account. There were 313,792 notices sent to third parties for levies by the IRS in 2024. Bank levies involve several notices, and your bank account will be frozen before the assets are removed. The IRS can remove all the funds needed to cover your debt and levy multiple accounts. This can put you in a hard financial situation.
If you receive additional IRS notices about collection actions, you need to act quickly to address your debt and avoid the severe financial consequences.
Criminal Consequences
In extreme cases, ignoring an IRS letter can result in criminal charges. This occurs if the notice was sent because the IRS suspects you intentionally lied or avoided paying your taxes.
FAQs About Florida Ignoring IRS Notices
What Happens if You Ignore a Letter From the IRS?
If you ignore a letter from the IRS, it can lead to several different issues depending on the nature of the letter. Ignored bills can lead to additional requests for payment that can escalate into collection actions. Ignored audit notices can result in the IRS making changes to your tax return, potentially requiring you to pay more in taxes.
At What Point Will the IRS Come After You?
The IRS will come after you to recover tax debt if you owe debt that was assessed and you have not paid it. The IRS can take certain actions to recover the debt, like issuing a tax lien, garnishing your wages, or seizing property and funds. How long it takes the IRS to begin collection actions depends on your situation, the debt you owe, and other factors.
What Triggers Red Flags to the IRS?
Red flags in your taxes that could lead to an audit or even investigation by the IRS can include failing to report all of your income, taking higher-than-normal deductions or credits, writing off business losses for multiple years, having foreign bank accounts, having high income, and other issues. For some errors, the IRS may make a correction itself or ask you to make the correction. For others, there could be an audit to assess the accuracy of your taxes.
Why Should You Hire an IRS Tactics Lawyer in Florida?
You should hire an IRS tactics lawyer in Florida if you have tax debt you can’t afford, are dealing with IRS collection actions, or otherwise have complex tax issues. A state tax lawyer in Jacksonville can help you protect your financial interests and your rights.
They can represent you directly when negotiating with the IRS and have years of experience managing these negotiations. They help you respond to letters, assess your options to resolve your tax debt, and determine how to end collection actions.
Contact Florida IRS Tactics Attorney
It’s crucial to read notices from the IRS and act accordingly. There are 18 IRS Taxpayer Assistance Center offices in Florida. TaxSmith, LLC can represent you in negotiations. Contact us.
