How the IRS Collections Process Works - Memphis, TN

Education & Training with McDonald Tax Consulting

McDonald Tax Consulting represents individuals as well as small businesses in Memphis, TN, Northern MS, and Eastern AR, who are dealing with IRS and State Tax Problems.  The problems may include past due taxes or unfiled tax returns.


The IRS Collections Process Can be Confusing and Scary!

The collection process is a sequence of actions that the IRS can take to collect the taxes owed by taxpayers if they don't voluntarily pay them.  Understanding the collections process is fundamental to resolving tax issues.  From filing a tax return to receiving the final notice of intent to levy, the IRS does follow a logical sequence of collection activities.  The IRS Collections Process generally contains the following steps:

1)    The taxpayer files the tax return or a substitute for return (SFR) is filed by the IRS.

2)   The IRS assesses tax amounts owed. 

3)   The IRS will send Billing Notices and/or Demand for Payment to the taxpayer.

4)   If the taxpayer does not pay the bill or make alternate arrangements (for example, an Installment Agreement, Offer in Compromise, or Currently Not Collectable) with the IRS, a Statutory Lien arises. 

5)   If the total taxes due are greater than $10,000, the IRS will file a Notice of Federal Tax Lien (NFTL) with the registry of deeds in the taxpayer's county of residence. The NFTL is a more formal lien than the Statutory Lien.  The NFTL is a public record, and it will impact the taxpayer's credit. 

6)   If the taxpayer continues to ignore requests from the IRS or refuses to pay, then a levy may be issued against the taxpayer’s assets.  A levy is a legal seizure of property to satisfy a tax debt.  It may include the IRS cleaning out bank accounts or having an employer garnish wages.  Note, taxpayers do have a right to a hearing at least 30 days before a levy is issued. 


Do you need help?

If you are in or near Memphis, TN, and need help with an IRS Collection Notice, Final Notice of Intent to Levy, or other tax problem, you can reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.  Please feel free to contact me at (833) 227-8292 or email me at  


Felicia McDonald, EA, MBA

IRS Resolution Specialist


McDonald Tax Consulting, LLC

1495 Brookhaven, Southaven, MS  38671

Phone: 833-227-TAX2, Mobile: 901-493-9844

Western, TN • Northern, MS • Eastern, AR


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