Navigating the complex world of tax forms can be a daunting task for many individuals. One of the forms that often raise questions is Form 701 6, also known as the "Notice of Intent to Levy and Notice of Your Right to a Hearing." This form is a crucial document that the Internal Revenue Service (IRS) sends to taxpayers who owe back taxes and are at risk of having their assets levied. In this article, we will delve into the world of Form 701 6, exploring its purpose, contents, and what it means for taxpayers who receive it.
What is Form 701 6?
Form 701 6 is a notice sent by the IRS to taxpayers who have an outstanding tax debt. The notice informs the taxpayer of the IRS's intention to levy their assets, such as wages, bank accounts, or other property, to satisfy the tax debt. The form also notifies the taxpayer of their right to a hearing, where they can dispute the levy or propose an alternative payment plan.
Why Does the IRS Send Form 701 6?
The IRS sends Form 701 6 to taxpayers who have ignored previous notices or have not made arrangements to pay their tax debt. The form is usually sent after the taxpayer has received several other notices, including a notice of deficiency and a notice of intent to levy. The IRS may also send Form 701 6 if the taxpayer has a history of non-compliance or has been involved in tax evasion or other illicit activities.
Understanding the Contents of Form 701 6
Form 701 6 typically includes the following information:
- The taxpayer's name and address
- The tax year(s) and type of tax owed
- The amount of tax owed, including penalties and interest
- A statement of the IRS's intention to levy the taxpayer's assets
- A notice of the taxpayer's right to a hearing
- Instructions on how to request a hearing
What to Do If You Receive Form 701 6
If you receive Form 701 6, it is essential to take immediate action to avoid further penalties and interest. Here are some steps you can take:
- Review the form carefully to ensure the information is accurate
- Contact the IRS to request a hearing or to propose an alternative payment plan
- Seek the advice of a tax professional or attorney to help you navigate the process
- Make arrangements to pay the tax debt in full or set up a payment plan
Requesting a Hearing
If you receive Form 701 6, you have the right to request a hearing to dispute the levy or propose an alternative payment plan. To request a hearing, you must submit a written request to the IRS within 30 days of receiving the form. The request should include:
- Your name and taxpayer identification number
- A statement of the reasons why you disagree with the levy
- A proposal for an alternative payment plan
Alternatives to Form 701 6
If you are unable to pay your tax debt in full, there are alternative options available, including:
- Installment agreements: allows you to make monthly payments towards your tax debt
- Offer in compromise: allows you to settle your tax debt for less than the full amount
- Currently not collectible: temporarily suspends collection activity due to financial hardship
Conclusion
Receiving Form 701 6 can be a stressful and overwhelming experience, but it is essential to take immediate action to avoid further penalties and interest. By understanding the contents of the form and taking the necessary steps, you can navigate the process and find a resolution to your tax debt. If you are unsure about what to do or need help with the process, consider seeking the advice of a tax professional or attorney.
Final Thoughts
Form 701 6 is a critical document that can have significant consequences for taxpayers who ignore it. By understanding the form and taking the necessary steps, you can avoid further penalties and interest and find a resolution to your tax debt. Remember to seek the advice of a tax professional or attorney if you are unsure about what to do or need help with the process.
What is Form 701 6?
+Form 701 6 is a notice sent by the IRS to taxpayers who have an outstanding tax debt, informing them of the IRS's intention to levy their assets.
Why does the IRS send Form 701 6?
+The IRS sends Form 701 6 to taxpayers who have ignored previous notices or have not made arrangements to pay their tax debt.
What should I do if I receive Form 701 6?
+If you receive Form 701 6, review the form carefully, contact the IRS to request a hearing or propose an alternative payment plan, and seek the advice of a tax professional or attorney.