Dealing with the IRS is scary. Owing the IRS money is even scarier. Knowing and understanding the Collection process can help you avoid having enforced collection action taken against you. Below is the step-by-step process the IRS uses:
1. The tax is assessed
2. The billing notice is sent. If it goes unpaid
3. A silent lien is attached, by statute, to all the taxpayer's assets owned and later acquired
4. Final notice of the IRS's intent to levy the taxpayer's income and assets is sent. This begins the 30-day window for the taxpayer to request a collection due process hearing.
5. IRS files a Notice of Federal Tax Lien in the public records if the taxpayer owes more than $10,000.
This will result in marketing mail from national IRS help companies and destroy taxpayer's credit score
6. If an appeal is not filed the IRS will begin seizing the taxpayer's assets, including garnishing wages, cleaning out their bank accounts, and going after clients who may owe the taxpayer money. This will cause major embarrassment.
7. The collection actions will continue until the Taxpayer calls a competent professional to help them sort out the issue and get it resolved.
If you owe the IRS, ignoring the issue is not a good idea. In fact, it is a horrible idea and will get you into a lot of trouble. Contacting the IRS for guidance isn't always the best idea either as some agents are not interested in helping the taxpayer.
Working with a qualified professional who knows and understands tax resolution is vital. The sooner you contact a professional, the sooner you can get the item resolved and stop stressing.
