Audit Letter 3172: The IRS Talks Tough About Your(Past Due) Taxes



If you’ve been blowing off that tax debt and not replying to any of the IRS’s  earlier correspondence, chances are Audit Letter 3172 will find its way into your mailbox.

This is the letter where Uncle Sam lays down the gauntlet; if you don’t reply or appeal within 30 days the IRS can and will impose a tax lien on your property as a means of recovering the past due taxes you owe them.

As mentioned before in earlier entries, a tax lien isn’t pretty. It’s not only a substantial amount of money that the IRS is attempting to collect, but a tax lien will also appear on your credit report under “public records.” It will be visible to any prospective landlord, lender, and employer. An open tax lien will torpedo your credit rating and make it difficult for you to secure financing (cars, homes, some student loan products such as the Grad Plus loan or private student loans) or an apartment lease.

What’s On The Letter

The letter will have the following information:

  • The amount you owe
  • The tax period for which the lien is issued
  • Instructions for filing an appeal
  • Contact information for reaching out to the IRS

What To Do Next

Once you get the notice, it’s vital that you contact the IRS right away at the number that’s listed on your letter. Doing so demonstrates good faith that you are willing to address your past due taxes.

Once you have the letter in your hands, don’t assume that you are out of options. You have the right to review the letter and to appeal the IRS’s findings if you feel the past due taxes are in error. You also have the option of setting up an installment plan with the IRS.

At this point you should also consider reaching out to a qualified tax advisor. They have the skill, ability, and tax law knowledge to negotiate with the IRS on your behalf. A tax pro will also make sure you understand your rights in dealing with the IRS.

Life happens. Past due taxes happen. If you receive an Audit 3172 Letter from the IRS, don’t despair. You do have options. Respond to the letter before the 30-day deadline, either on your own or with a tax advisor who will act on your behalf.

If you’re facing a tax lien, past due taxes or any other tax-related hardship, we have qualified tax pros on staff to assist you. Get started today by clicking the white “Start Chat” button or by giving us a call. Learn about your options, put your mind at ease, and get your tax matter cleared for once and for all. You don’t have to go it alone.


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