Are you struggling with Illinois Department of Revenue collections? Do you have overwhelming Illinois tax debt that you can’t afford to pay? You have options, and our Chicago tax law firm can help!
Strategies are available to stop collections immediately and manage—even, in some cases, eliminate—your tax debt to the Illinois Department of Revenue (IDOR).
Illinois Back Taxes: You’re Not Alone and Reduction Options Are Available
You’re not alone. Many people struggle with overwhelming tax debts. And thankfully, revenue agents understand financial roller coasters and will often compromise with constituents. In fact, it’s best to face the problem, take action, and work with an attorney who knows how to secure the best possible settlement.
Remember: With the help of an experienced tax attorney, there’s a very good chance you’ll be able to get your debt reduced, and in some cases eliminated.
Part 1: How Illinois Department of Revenue Collections Work
Illinois Department of Revenue collections kick off when the agency believes you haven’t paid your full tax bill. This can include income tax, sales and use tax, and more. Businesses are often the target of IDOR’s collection activity, but individuals can face the wrath of the agency, as well.
Before the state begins collections, they should notify you of your tax obligations in writing with instructions for what to do next. This is the best time to contact a tax attorney and nip the problem in the bud.
If you ignore these notices, the Illinois Department of Revenue can use several methods to collect unpaid taxes, which may seem extreme to the average taxpayer and can certainly throw a wrench in the middle of your life.
We strongly recommend seeking an Illinois tax attorney before these extreme collection measures begin. However, even if you’re in the midst of one of these problems, we can help!
Illinois Department of Revenue Liens
State and federal authorities can use liens to collect tax debts. What does that mean, exactly? Essentially, IDOR stakes a claim to some of your property, such as a house or car.
Once the Illinois Department of Revenue collections place a lien on your car, house, or other property, they’ll have the power to foreclose if the debt is not paid. Because of this, it would be very difficult to sell, since IDOR would still legally own part or all of the property and be able to foreclose on it.
What’s more, liens are public and can impact your credit!
Asset Seizure by Illinois Department of Revenue Collections
Authorities can seize material assets (real estate, automobiles, equipment, jewelry, luxury items, et cetera) to recover tax debt. Yes, we said seize, as in take your personal property away. You can stop this process, but you’ll need to act fast.
The Illinois Department of Revenue typically notifies people 10 days ahead of confiscations. Moreover, seized items usually can’t be sold or auctioned by IDOR for at least 20 days after being commandeered.
In total, this gives you 30 days for a final opportunity to secure payment arrangements and halt seizures. Solutions can include negotiating loans or settlements (more on that below).
If you’ve received notice of a seizure by the Illinois Department of Revenue, call our tax attorneys right away!
Illinois Department of Revenue Levies
Levies are another way the Illinois Department of Revenue reclaims tax debts. Levies are a practical and social hindrance, as authorities can take up to 15% of paychecks, plus communicate directly to your employer about your financial hardships.
One of the worst types of levies is a bank account levy. Often, Illinois Department of Revenue agents levy the funds of your bank account and apply it towards your tax debt.
They do have to provide notice, and tax attorneys can try to stop it, but typically, once the funds are taken, they are gone and applied to your tax.
Professional Revocation by Illinois Department of Revenue Collections
It may seem counterproductive, but IDOR can revoke and suspend professional licenses, credentials, corporate charters, and lottery licenses. In some cases, they’ll include your name on a list of delinquent taxpayers, which is posted online.
Believe it or not, the Illinois Department of Revenue will often prefer to shut down a business with a tax debt rather than to allow it to operate and pay back the debt. With the help of a tax attorney, we can help increase your chances of working out a payment agreement and continuing your business.
Part 2: How to Stop Illinois Department of Revenue Collections
Now that we’ve covered what the Illinois Department of Revenue can do to collect its unpaid funds, let’s review your options to stop the collections process in its tracks.
Stop Illinois Tax Debt Collections Fast with an Appeal
The first thing we can do to halt Illinois liens, levies, and asset seizure is to file a petition with the Board of Appeals and request a Temporary Restraining Order (TRO). While a TRO is not a get-out-debt-free card, it can stop IDOR’s collection activity within a matter of days.
It often takes years for your case to be heard by the Board of Appeals. In the meantime, the Temporary Restraining Order will continue to block Illinois Department of Revenue collections—as long as you’re following the terms and making the correct payments.
When requesting a Temporary Restraining Order, you’ll have to include a financial statement which will determine your monthly payments to the Illinois Department of Revenue up until your hearing date.
During the TRO period, you must continue to make these payments and file all tax returns on time; otherwise, collections will pick up right where they left off. (Failing to file tax returns would also add non-filing penalties to your existing debt.)
Find a Long-Term Solution to Illinois Tax Debt
Once you have a Board of Appeals hearing, your Illinois tax attorney can help you secure a manageable solution for your tax debt, including an Installment Agreement, Innocent Spouse Relief, or an Offer in Compromise.
One of our Chicago tax lawyers will captain your negotiation ship. We’ve handled over 100 tax debt cases, so we know exactly how to approach specific situations and how to secure the best results from Illinois Department of Revenue collections.
We can often obtain payment plans that will allow for several years to pay off your Illinois tax debt.
Under the right circumstances, we may even be able to get tax penalties and late fees (which usually make up the bulk of tax debts) reduced or completely erased. Our team of Illinois tax law attorneys has the experience and know-how you need to get the job done.
Connect With A Chicago Tax Lawyer Today
Are you struggling with Illinois tax debt? We’re here to make it better. Our team of friendly and skilled attorneys knows exactly what to do and will negotiate with Illinois Department of Revenue collections on your behalf.
Most importantly, we’ll make sure you pay the least amount possible. In most instances, we’re able to secure significantly reduced settlement amounts.