If you received a letter from the IRS, it will be Certified with return receipt .You must respond to the letter within the specified dead line. Failure to do so can and will result in further collection activities which will destroy your credit. So you must answer it, and be ready to resolve the matter. I always recommend using a tax attorney when dealing with very large tax debt. It is just a safer way to go, when it comes to something as serious like getting into debt with the government.

If you have not filed your taxes for the past few years, you may want to consider getting on it. The IRS is looking for you, and many others that haven’t filed their taxes. A tax payer is required by law to file their taxes. If the tax collector has not made contact with you, then you have a chance to fix your situation.  It is always in your best interest to get your tax matters resolved, and take care of the situation, rather than the government coming to you demanding money.

First and foremost, do not call the IRS!

Doing this could trigger the collection and levy process, before knowing your situation, causing you to be on the reactive, rather than proactive. It is better to be on top of your situation before engaging the IRS.

You will need to contact an accountant to help determine your situation. You will need to complete your tax filings for each tax year.

Once you figure out your situation, you will need to plan the next course of action.

If you owe money to the IRS, you will need to pay it. If you have it, then pay it.  If you don’t have it, and it is something that you can afford to make payments that will be completed within one to two years, then you can make payment arrangements with the IRS.

Once you file your returns, you can contact them to make payment arrangements. They are usually very easy to work with and very cooperative. 

If you feel that you cannot afford it, or you owe them substantial amounts of money ranging in several thousand or more, you should contact a tax lawyer as soon as possible.

If you are on a payment schedule with the IRS, and have not received a tax lien, then they will not report to the credit bureaus. If you do receive a tax lien, levy, etc. then they will and are allowed to report for 7 years after you pay your total tax debt.

To find out more information regarding taxes and the laws regarding tax related information, you can visit the IRS website