The IRS collections process starts when the IRS opens a collections case. The IRS generally does this when a tax return is filed, an audit is closed with additional taxes being owed, or other changes are made that show additional taxes being owed and the IRS computer does not indicate that payment received.
Once this happens, the IRS will begin sending various collections notices. Unless the taxpayer acts to stop collections, these notices will culminate in the IRS levying or seizing the taxpayers property, garnishing the taxpayers wages, or filing an IRS tax lien.
There are a number of ways to stop this process, including obtaining a collections hold, the submission of a monthly installment agreement or an offer in compromise, filing a collections due process hearing request, or filing a bankruptcy petition.
There are a number of factors to consider in determining which option will work given the taxpayers situation and which option is most advantageous. We can help with this.
We help taxpayers with IRS collections issues daily. Please contact us immediately if the IRS is trying to collect a tax debt from you.