Tax Seminar #3 – December 3 2012

Notice and Demand of Tax Due
• The “ Notice and Demand” triggers three key
consequences:
1. Lien arises in favor of the IRS. IRC §§ 6321, 6331
2. IRS is permitted to use administrative collection
measures including levy.
3. Failure to pay penalty will accrue from the date of the
notice and demand unless the assessed amount is paid
within 21 days. IRC § 6651(a)(3).
5
Payment of Taxes
• If the taxpayer can pay after receipt of the
notice and demand, he or she should do so.
Paying will avoid the late payment penalties
from accruing, will avoid further interest
accrual and will avoid the taxpayer being
subject to liens and levies.
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