Income tax return form

Things to Know if You’re In IRS Collections

If you have an outstanding balance with the IRS chances are you’ve been entered into the IRS Collection system. The IRS is under a mandate to follow a specific process when attempting to collect past due taxes from tax payers. Being informed about how the IRS Collection system works could save you a lot of undue heartache.

The IRS uses a collection system called Automated Collection System (ACS). This system is completely automated and sends letters, notices, and files tax liens. The second component in this part of the system is the call center. If you’ve ever been subject to collection calls from third party agencies, the IRS collection call center, though governed differently works in similar ways. Generally, IRS representatives have strict guidelines that must be followed. They don’t have the ability to work outside of rules that have been pre-established. This could leave you wanting if you need first hand advice regarding a complex tax topic.

In addition to the IRS Collection system are collection Field Agents. Field Agents, often referred to as Revenue Officers are assigned geographical locations throughout the United States. They are responsible for many things related to the collection process to include on sight visits, collection of vital information, and verification of reported tax payer information. For example, if you’re hiding an asset somewhere the Revenue Officer would most likely be the person to discover and report it. Their job is to resolve the tax liability using all means afforded to them by law, and they take their jobs very seriously.

As I’ve stated a hundred times over, the worst thing to do is nothing. Below is a list of things that Revenue Officers look for while performing their job duties.

  • Does the tax payer have outstanding tax returns due? Make sure all back taxes have been filed. The IRS will not consider payment arrangement, settlements, or any other potential resolution unless you are tax compliant.
  • Has the tax payer incurred any new tax debt? Ensure that you make timely payments regarding any new taxes such as estimated taxes due, or employment tax.
  • Has the tax payer provided all relevant sources of income, assets, expenses, and other debts (i.e. State tax owed)? Based on examination of the above information, further collection action could be implemented or deferred.
  • Has the tax payer applied for the best possible resolution available given the situation? If you haven’t done so, it would be prudent to do so as soon as possible. This provides you protection from garnishments, levies, and other harsh collection tactics available to the IRS.
  • Has additional tax debt accrued since entering into an agreement or settlement? Make sure that once your agreement is in place you don’t incur additional tax debt. If you find yourself in this situation pay as much of it as possible and consult a tax pro for further assistance.
  • If a business is involved, who in the business could be held liable for Trust Fund Recovery Penalties? Anyone in a business with both access and knowledge of payments due could be held personally liable for TFRP.
  • Has all deadlines been meant? Notices are sent for a reason. Most notices provide amble time to respond. Failure to respond to IRS notices is a sure way to escalate the problem.

Should you require additional help with your tax issue call Advantage Tax Services (866) 606-3570, Inc. You will be connected to a licensed representative who will provide the guidance you need.

Scroll to Top
Scroll to Top