How Does IRS Collection Work in Lufkin, Texas?

By
Education & Training with Rachel Kennerly, CPA

In my practice we frequently help taxpayers in Lufkin or cities around East Texas who have gotten behind on their federal income tax liability and are in hot water with the Internal Revenue Service (IRS) .  If you find yourself in that same situation it's helpful to understand how the IRS collection process works.

 

After a tax return is filed and processed the IRS will assess the taxpayer for any taxes due.  A billing notice (or demand for payments) is mailed to the taxpayer.  If the total due is not paid, then a silent federal tax lien arises automatically by law and attaches to all the taxpayer's assets owned and later acquired. 

 

If the balance continues to go unpaid the IRS will send another billing notice and then will send a final notice of intent to levy the taxpayer's income and assets.  This notice of intent to levy begins the statutory 30-day window for the taxpayer to request a Collection Due Process (CDP) hearing. 

 

If the balance due is greater than $10,000 the IRS will file a Notice of Federal Tax Lien (NFTL) on both the land records in Angelina County (or wherever the taxpayer resides) and the Texas Secretary of State (SOS).

 

Upon receipt of the NFTL or final notice of the IRS's intent to levy, the taxpayer has 30 days to request a Collection Due Process (CDP) hearing with an Appeals Officer or Settlement Officer.  At the end of that 30 days if the taxpayer does not request a CDP or pay the outstanding balance the IRS will levy the taxpayers assets.  These levy actions can include cleaning out bank accounts, garnishing wages, and going after anyone who might owe the taxpayer money. 

 

These collection efforts will continue until either the taxpayer's IRS tax debit is paid in full, or they begin to take a proactive approach to settling their tax debt.  The first step in that process is calling a competent professional, like me, to get their tax issues resolved.

 

If you need assistance in Lufkin, Texas, Angelina County or anywhere else in East Texas resolving your IRS tax debt, contact us today at 903-631-0317 or rachel@kennerlycpa.com

 

Rachel Kennerly, CPA, MBA
Rachel Kennerly, LLC
rachel@kennerlycpa.com
www.kennerlycpa.com
Lufkin, TX

 

Comments (4)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Welcome to the ActiveRain community. Congratulations on your first post.

Jan 22, 2019 02:27 PM
The Woodland Team of Texas
The Woodland Companies - Austin, TX
Land Specialists

Welcome to ActiveRain, I hope that your participation here helps your business to grow.
Btw, I followed your blog, and would be honored if you followed mine.
Thank You!

Jan 22, 2019 06:55 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Rachel Kennerly, CPA welcome to ActiveRain, and congratulations on successfully posting your first blog on this site.

Jan 24, 2019 03:43 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Welcome to Active Rain, looking forward to reading many more of your posts, let me know if there is anything that I can do to help as you get started here.
All the best of success to you.
Bob

Feb 19, 2019 09:34 PM

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