Delinquent IRS Taxes and Collection Process

After you file a tax return with a balance due, the IRS will send a progression of IRS notices. The first notice is known as an Amount Due notice. This notice will inform you of your balance due and any penalties and interest that have accrued. This notice will give you 30 days to pay the balance due or contact the IRS to determine repayment options. The next notice is known as the Final Notice of Intent to Levy. This notice is issued roughly 45 days after the amount due notice. The IRS must issue this notice in order to take collection actions such as wage garnishments or bank levies. Therefore, even if you established a repayment plan, the IRS will still send this notice.

Most IRS collection notices are issued from the Automated Collection System or “ACS” for short. Therefore, most delinquent taxpayers are directed to contact ACS to address their tax issue. However, certain files are sent to the field for enforcement. If your file is moved from ACS to the field, you will receive contact from the agent that gets assigned to your file. The agents in the field are known as revenue officers. Most files that are sent out to the field owe over a certain threshold, have a history of not filing returns, or are self-employed individuals. Revenue officers are required to be much more scrutinizing in the evaluation of your financial circumstances when determining your tax resolution options. Therefore, if your file is transferred to the field, be prepared to provide massive amounts of financial paperwork.

Whether your delinquent tax file is assigned to ACS or the field, knowing what you must present is key to the outcome. Most taxpayers assume that the IRS knows everything about their financial circumstances and therefore, provide more information than necessary.  The financial presentation is critical in negotiating your tax resolution with the IRS. Too much information can disqualify or alter your tax resolution options in a negative way. In fact, this is why most tax practitioners do obtain superior tax resolution outcomes. Here at Resolve Tax, I know exactly what financial information to present, how to present it, and how it will effectuate the tax resolution outcome. If you have delinquent taxes, it is advisable to seek assistance from a tax practitioner before contacting the IRS. I recommend every delinquent taxpayer assert their publication 1 rights and retain a tax practitioner.

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