Leander, TX: IRS Collection Notices - What do they mean?

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I am an Enrolled Agent who represents taxpayers in Leander and central Texas who owe the IRS, have unfiled tax returns, are being threatened with collection enforcement, or similar issue.

If you're like most taxpayers then you probably wince or crease your brow upon receiving a notice from the IRS. It's usually not a good thing.

What do you do when you receive an IRS collection notice?

The IRS doesn't send out a collection notice until they've determined that you owe them money. That means that you should have already been contacted about your tax return being audited or changed due to discrepancies or mismatch with information provided to the IRS by 3rd parties such as form W2, 1099, 1099B, and so on.

You may be contacted by an IRS collections representative known as a Revenue Officer.

The initial collection notice is the 'Notice of Deficiency' also known as a CP3219A letter. The IRS is officially notifying you that you owe them money and your options for response.

The letter will state the you have the right to petition the Tax Court if you want to challenge the deficiency determination, including penalties, BEFORE making any payment arrangement.

If you don't file a Tax Court petition within 90 days (or 150 days if the notice is addressed to a person outside the United States), make a full payment of the amount due, set up an installment agreement, or some other acceptable arrangement then you may receive a couple more "friendly" reminders to pay the tax. The IRS ultimately will send out a 'Final Notice of Intent to Seize (Levy) Your Property or Rights to Property'.

Upon receiving this notice, you have 10 days to contact the IRS and make payment arrangement or they will use their vast collection power to levy your bank account, garnish your wages, place a lien on your property, seize any property and sell it to pay the debt, etc.

After issuing the Final Notice, the IRS is not required to send anymore reminders and may seize your property at any time once the 10 days passes with no response from you.

Navigating your way through IRS collections can be challenging and confusing.

If you or someone you know owes the IRS, has unfiled tax returns, or other unresolved IRS tax problems, please feel free to contact me at either (512) 592-7720 or by email at peter@thetaxproadvisor.com.

Peter N. Mitchell, EA

Tax Pro Advisor, LLC

605 Las Colinas Dr.

Leander, TX 78641

Ph. 512-592-7720





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