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How Does IRS Tax Collection Actually Work?

Education & Training with Apex Tax Defense LLC

I focus my practice on tax resolution, respresenting taxpayers in Colorado, Florida and across the United States. The IRS is responsible for collecting taxes from individuals and businesses in the United States.

The process of collecting taxes begins with the filing of tax returns. Taxpayers are required to file their returns by a certain date, typically April 15th for individuals, and pay any taxes owed.

If a taxpayer fails to file their return or pay their taxes, the IRS will take action to collect the unpaid taxes. This process is known as IRS collection. The first step in the collection process is typically a letter or notice sent to the taxpayer, which informs them of the unpaid taxes and requests payment.

If the taxpayer fails to respond to the letter or notice, the IRS may take further action, such as placing a lien on the taxpayer's property or levying their bank account. A lien is a legal claim against the taxpayer's property, which can prevent the sale or transfer of the property until the taxes are paid. A levy, on the other hand, is the legal seizure of the taxpayer's assets, such as wages or bank accounts, to satisfy the unpaid taxes.

The IRS also offers a variety of payment options to taxpayers who are unable to pay their taxes in full. These options include installment agreements, which allow taxpayers to make payments over time, and offers in compromise, which allow taxpayers to settle their taxes for less than the full amount owed.

It is important to note that the IRS has certain rights and limitations on the collection process. For example, the IRS genrally cannot seize certain types of property, such as a primary residence or tools of trade, and there are also limitations on the amount of time the IRS has to collect unpaid taxes. Taxpayers who are facing IRS collection should consult with a tax professional for guidance on their rights and options.

If you or someone you know has back taxes or IRS issues to deal with, contact us immediately at 303-499-2700 or by email at mmoran@apextaxdefense.com .


Michael Moran, CEO, EA

Apex Tax Defense LLC

825 S Broadway

Boulder, CO 80305

Phone: 303-499-2700

Fax: 888-478-7627

Email: mmoran@apextaxdefense.com