For those taxpayers who file their tax returns but do not pay what they owe, the IRS sends the taxpayer a bill, which includes interest and penalties. This begins the collection process.
If the taxpayer does not respond to the bill or subsequent correspondence, the account becomes delinquent, and may be turned over to the Automated Collection System (ACS), where IRS personnel will contact the taxpayer by telephone to work out an agreeable payment solution. If after several attempts the IRS is still unable to contact the taxpayer, or cannot work out a payment solution, the account may then be turned over to a revenue officer, who will attempt to contact the taxpayer in person to settle the account.
If the IRS is still unable to work out a payment solution, it may prior to assigning the account to a local revenue officer, take enforcement action. That action could include filing a lien, serving a notice of levy, or seizure and sale of property.
Before the IRS can take any of these actions, the IRS must issue a “Final Notice” to the taxpayer allowing up to 30 days from the date of the Final Notice to pay in full or to find another solution. Ignoring this notice or doing nothing will only make matters worse. We can analyze your situation to find the best course of action for you and avoid the levy. Once the 30 days has passed, the IRS does not have to give any further notice before seizing your assets, including your checking accounts, savings accounts, and your wages.
By securing a temporary freeze on further collection activity, we have sufficient time to analyze your situation and determine the best course of action. For many taxpayers, this could lead to an Offer in Compromise.