Useful Tips

What options does the taxpayer have when his her account is in IRS collections?


What options does the taxpayer have when his her account is in IRS collections?

You can apply for a payment plan using the Online Payment Agreement (OPA) Application or you may complete Form 9465, Installment Agreement Request and mail it in with your bill. You may also request an installment agreement over the phone by calling the phone number listed on your balance due notice.

What collection agency does IRS use?

Before you receive a phone call, both the IRS and the private collection agency (PCA) will send you a letter.

Is the IRS enforcing collections?

The IRS will not issue Notices of Levy during the collection suspension period, unless there are pressing circumstances. This includes automated levy programs such as: The Federal Payment Levy Program; the State Income Tax Levy Program; and the Municipal Income Tax Levy Program.

Is the IRS suspending collections in 2021?

If you’re a taxpayer with a tax balance due, keep in mind that the IRS has resumed specific tax debt collection and enforcement processes suspended due to COVID-19.

How long can the IRS come after you?

10 years
Generally, under IRC § 6502, the IRS will have 10 years to collect a liability from the date of assessment. After this 10-year period or statute of limitations has expired, the IRS can no longer try and collect on an IRS balance due. However, there are several things to note about this 10-year rule.

What happens when the IRS suspends a collection action?

During a temporary delay, we will again review your ability to pay. The IRS may temporarily suspend certain collection actions, such as issuing a levy (explained below), until your financial condition improves. However, we may still file a Notice of Federal Tax Lien (explained below) while your account is suspended.

When does the IRS start the 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. This bill starts the collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax; for example, when the time or period for collection expires.

When does the IRS have to take enforcement action?

If taxes are not paid timely, and the IRS is not notified why the taxes cannot be paid, the law requires that enforcement action be taken, which could include the following: Issuing a Summons to the taxpayer or third parties to secure information to prepare unfiled tax returns or determine the taxpayer’s ability to pay

How to get out of a federal tax lien?

The best way to get rid of it is to get an IRS Certificate of Release of Federal Tax Lien. The IRS will issue a Certificate of Release if you fully pay the tax owed, discharge it in bankruptcy, or pay it through an Offer in Compromise or if the time limit for IRS collections has run out.