When you owe money to the IRS, you will begin to receive letters. While you should always read them and respond right away, IRS Letter 3174 is especially important. It is the last notice you will receive before your property is levied or seized.
Read on to learn more about this letter, how to respond, and where you can get help if you need it.
What is IRS Letter 3174?
IRS Letter 3174 is a ‘New Warning of Enforcement’ which follows the ‘Notice of Intent to Levy’.
When you have unpaid taxes and have not set up arrangements with the IRS, it will send a Notice of Intent to Levy. If you don’t respond by the deadline on the notice they can levy or seize your property.
If the IRS has issued you a Notice of Levy but hasn’t enforced it for 180 days or more but now plans to do so, it warns you first. This warning can be delivered in person, by phone, or through IRS Letter 3174. The IRS generally waits a minimum of 15 days after sending the letter to take enforcement action aka levying or seizing your property.
How to respond to IRS Letter 3174
If you receive IRS letter 3174, you need to call the IRS at the phone number provided on the notice right away. As stated above, the IRS generally gives you 15 days before taking action.
Whether you want to pay, prove that you already paid, set up payment arrangements, or appeal the amount due, it is important to do so quickly to avoid levying actions.
What if you can’t pay now?
If you can’t pay the amount you owe right away, that is okay. The IRS will work with you. It has several programs from installment agreements to putting a temporary pause on collections due to a financial hardship. Here’s a brief overview:
- Installment Agreements (IA): Pay your balance over time in payments by setting up an installment agreement. Fees, interest, and penalties apply.
- Offer in Compromise (OIC): Submit an offer for less than the amount due in an effort to settle the debt. The amount may be paid off in payments. You will have to prove the OIC is the most you can pay without economic hardship.
- Non-collectible Status (CNC): If you are going through a verifiable financial hardship, the IRS may place you on non-collectible status until your situation changes.
By calling the IRS or speaking with a tax relief firm, you can learn which options are available to you. Coming to an agreement with the IRS will usually stop levy actions.
Where can you get help?
If you want to enlist the help and support of an expert, you can do so by hiring a tax relief firm. These professionals know the ins and outs of tax laws and work to protect the interest of taxpayers.
They will analyze your situation and advise you on the steps to take to get the best outcome. You can increase your chances of paying less and can skip much of the stress involved with IRS debt.
Not sure which company to hire? Review and compare tax relief firms below.
Jessica Walrack is a personal finance writer at SuperMoney, The Simple Dollar, Interest.com, Commonbond, Bankrate, NextAdvisor, Guardian, Personalloans.org and many others. She specializes in taking personal finance topics like loans, credit cards, and budgeting, and making them accessible and fun.