When the IRS determines that an individual owes back taxes of any kind, an IRS employee is assigned to handle an assessment of the exact amount the individual owes. Under rules set forth in tax assessment statutes, this is done through an official tax assessment, which must be performed within the Federal Statute of Limitations in order for any judgment made to be enforceable. This means that unless the IRS can prove that a fraudulent tax return has been filed, the assessment must be completed and the individual must be notified of his or her determined tax liability within 3 years of the last tax return being filed.
- The official IRS assessment is conducted through the use of a notice first, informing the individual of the discovery of some amount of
back taxes being owed
- The amount is generated from the last filed tax return along with any interest or penalties that may have been applied.
- This notice is intended to allow people the opportunity to pay their liability before the IRS is forced to take action against them.
- After a succession of different notices, if the individual still has made no attempt to satisfy the liability amount, the IRS may take action and place a levy against any property of the debtor in order to secure the amount of the liability, or an amount that is comparable.
If you are facing tax assessment for back taxes, you need to contact an experienced lawyer to determine what your rights and obligations are when it comes to dealing with the IRS.