The IRS Collection Process

I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. The IRS Collection Process can be intimidating, but it is relatively simple. Typically, it goes like this:

1.  IRS sends a notice of tax due.
2.  IRS sends a second, more threating, notice.
3.  IRS sends a final, really threatening, notice.
4.  IRS files a Notice of Federal Tax Lien (NFTL) in the county of residence.
5.  IRS sends a Notice of Intent to Levy that will become effective 30 days hence.
6.  IRS issues the Levy against bank accounts, IRA accounts, and future wages.

 How can you avoid them proceeding through all the steps in the process?

1. Talk to them for starters. Remember nobody likes being ignored and that goes double for government people.
2. Remember to not make it personal.  They have a job to do and most of them simply want to keep their cases moving so that their managers and their manager’s managers will stay off their backs.
3. Provide them with any documents requested within the time frames agreed to.
4. Never lie to them and never guess at an answer. If you don’t know the answer, then tell them you don’t know.
5. Recognize in advance that your current tax returns must all be filed, and your current year tax payments must be up to date, before a Revenue Officer can make any deals.
6. Be willing to make a deal if you are reasonably sure you can live up to that deal. The IRS personnel are there to represent the government. Their job is to make the best possible deal for their side, not yours.

Can you do this on your own without professional help? Using a Tax Representative has a lot of advantages:

1. We are there to represent you and our job is to get the best deal possible for you.
2. We can keep you out of the direct conversations which eliminates the potential of you saying something that might be later construed as “lying”, a criminal offense.
3. We have the tools that allow us to develop the best strategy for getting out of your tax mess and putting your life back in order.

If you or someone you know has received a Notice of Intent to Levy or some other federal or state tax issue, please feel free to contact me at either (352) 317-5692 or email jim@backoffice2.net.

Jim Payne, CPA

Backoffice2

Gainesville, FL

Cell (352) 317-5692

Office (352) 376-9401

Fax (352) 376-9440

jim@backoffice2.net

https://backoffice2.net