If you receive an LT16 form from the IRS, it's likely because you owe back taxes from previous tax years. The LT16 form will calculate the full total you owe the IRS (with interest) across all applicable tax years and serves as essentially a final bill before enforcement action is taken. As this notice states, payment arrangement must be made by the stated deadline. If it is not, the IRS will proceed with actions that could include placing a levy on your property or even confiscating funds directly from an income source in order to pay off the back taxes. If you receive such a notice from the IRS, you need to hire a CPA immediately.
Have a Professional Double Check the IRS
Just because the IRS says you owe something does not always mean it's true. The IRS is an organization of human beings and humans make mistakes. While this particular letter can appear somewhat threatening, you should still take a couple of days and make sure the numbers on it are accurate before you respond. A CPA can go over your returns from previous tax years and make sure you actually owe what's on the letter.
Assistance Setting Up a Payment Plan
If you can't pay the full amount you owe immediately, the IRS may let you make a monthly payment arrangement. But if you go this route, the IRS will want information like your monthly income and expenses and they may even directly ask you how much you think you can pay on the bill every month before they make their final decision. This means now is the time to go over your finances in detail in order to find the extra money needed to start paying down your debt to the IRS. A good CPA may be able to wring a few extra dollars out of your budget than if you try to go it alone and that will pay off in the long run.
You'll Have a Pro on Your Side if the Matter Escalates
If you can't make arrangements to pay the amount on your LT16 letter from the IRS, it's possible the IRS will proceed with enforcement. If you are served with a lien or another action, you may be thrown for a loop wondering what to do. Having a CPA on your side who already understands your situation can be helpful if it comes to this. He or she may be able to help you protect certain funds from enforcement or at least help you come up with a strategy to pay the bill.
Contact CPAs like those at Emerald Financial Partners today if you receive a LT16 notice from the IRS.Share