IRS Collection Process

If you don't pay your tax in full when you file your tax return, you'll receive a bill for the amount you owe.  The letter you receive will include instructions for making payment arrangements, and also provide information about what to do if you do not agree with the amount.  This letter will be followed by a few more letters spaced out over several months, each progressively more demanding and threatening.  If you do not respond to these notices, your case will be referred for collection. 

Depending on how much you owe and the type of tax, your case may go to a Call Site to be worked, it may be assigned to a Private Debt Collection (PDC) agency, or it may go to a field office for direct contact by a revenue officer.  All these assignments have the potential for negative consequences for the taxpayer.  The Call Site will attempt to make telephone contact with the taxpayer to demand payment.  Call Site personnel have a reputation for being aggressive and difficult to work with.  Private Debt Collection agencies work on a commission and also have a reputation for being difficult to work with.  Of these three alternatives, the one with the most risk to the taxpayer is having the case assigned to a field revenue officer.

Revenue Officers are specially trained IRS civil enforcement officers who work the most difficult tax cases.  Revenue Officers have broad authorities to enforce collection, issue summonses for information from the taxpayer and third parties, and to conduct tax investigations.  Revenue Officers work an inventory of 40-80 tax accounts and their effectiveness is measured by the efficiency and quality of their work in bringing their cases to prompt resolution.  Ignore a revenue officer at your own peril; the case will likely end badly.

The best way to deal with IRS collection is to be proactive and communicative.  Being proactive means getting current with your filings and current taxes.   And then respond promptly to all letters, telephone calls, or visits to your home. 

If you want help with this, call me at Straightline Tax Resolutions.