Warnings signs of tax-related identity theft

1. More than one tax return was filed using your Social Security number.
2. You owe additional tax or a refund offset, or have had collection actions taken against you for a year you did not file a tax return.
3. IRS records indicate you received wages or income from an unknown employer.

What if IRS did not receive my tax payment?

If the payment hasn’t been credited and your check hasn’t cleared, you may choose to place a stop payment order on the original check and send another payment. If you choose this option, the IRS won’t charge a dishonored check penalty. And you may be reimbursed for bank charges related to stopping payment.

Will my bank hold my tax refund check?

Your bank is allowed by law to hold onto your refund for up to four business days before releasing it to you (you can thank Congress for that). If there is anything incorrect about your direct deposit information – the name on the account (must be yours), the RTN or the account number – the IRS will mail you a check.

What does currently not collectible status do for the IRS?

A currently not collectible status protects you from the IRS, stopping levies, threatening letters and collection enforcement. It forces the IRS to simply leave you alone without requiring any payment on your end.

When does the IRS remove you from CNC status?

The IRS will usually file a federal tax lien if you owe more than $10,000. CNC status may not be forever. After you get CNC status, the IRS will review your financial situation every year to see if you can afford to pay your taxes again. If your financial situation changes, the IRS may remove you from CNC status and ask for new terms.

Do you have to pay new taxes if you have hardship status?

If you expect to owe new taxes for this year and your back taxes are in IRS Hardship status, the new taxes will not be automatically included in the IRS Hardship status. Every tax year is treated separately. For example, you could owe back taxes for 2005-2008, and new taxes for 2010.

What happens if you ignore your tax bill?

Many times, people who ignore their tax bill get a false sense of security that the IRS will ignore the issue, too. It’s true that the IRS can put taxpayers into CNC status if the IRS can’t locate them, but those taxpayers will be open to federal tax liens, bank levies, and wage garnishments.