About the IRS collections function.
IRS officers are basically collection experts. They can send notices, make collection calls, issue levies and even come to your home. They may also seize your property.
IRS collections officers are locally stationed and if you do owe or have owed money on your taxes, you’ll likely know the officer who is in your area.
The IRS officers’ job is to push you to comply with paying all kinds of debts that are in arrears—this includes penalties, back taxes, and current taxes. They may turn to intimidation tactics that can be humiliating.
They may pressure you to pay the full amount of money that you owe, even though that may feel impossible. This is why you need a skilled professional on your side to help with negotiations.
How does the IRS collection process start?
The IRS will start sending collections notices if a taxpayer owes taxes typically for one of three reasons:
- When a tax return is filed,
- When an audit is closed and taxes unpaid, or
- Other changes are made that show additional taxes being owed and the IRS computer does not indicate that the payment was received.
Have you received an IRS notice? If so, you probably either (1) opened it immediately as you had to know what the problem was or (2) refused to open it as you were hoping that the problem would go away on its own.
What type of IRS notice did you receive?
Once you finally read the notice, you may be left wondering what the notice actually means. Here are a few examples:
- The CP215 Civil Penalty Assessment Notice: This notice tells business taxpayers that a civil penalty has been recorded on the IRS’s books for your business’s account.
- The CP015 Civil Penalties Notice: This is similar to the CP215 notice (above) but is issued to individual taxpayers. This notice is intended to notify individual taxpayers that a civil penalty has been assessed, i.e., recorded on the IRS’s books and records for your account. It also includes an explanation as to why the penalty was assessed.
- CP128 Balance Due After Offset notice: This notice tells business taxpayers that payments collected by the IRS did not fully satisfy the balance due and an additional amount is due.
(Read more about IRS notices here.)
What happens if you ignore the IRS notices?
If the taxpayer does not acknowledge and acquiesce to the collections, the IRS is allowed to move onto the next steps, which includes levying or seizing the taxpayer’s property, garnishing their wages, or filing an IRS tax lien.
Take action now to stop IRS collections.
There are a number of ways to stop IRS collections, including:
- Obtaining a collections hold
- The submission of a monthly installment agreement or an offer in compromise
- Filing a collections due process hearing request
- Filing a bankruptcy petition
These are just a few examples.
Get Help Today
We are former IRS attorneys, appeals officers, and auditors who help taxpayers with unpaid tax debts. We offer compassionate, individualized service at manageable rates.
Call today for a confidential consultation. Our number is 281-631-3300.