Dealing with IRS Collections Procedures

The IRS collections process starts when you submit to the IRS your tax return, without the amount due yet. The IRS will be the one to identify how much you owe them by sending you a bill. Explanations on the amount due and request for a full payment are among the information reflected in this first bill. Other notices, this time including applicable penalties and carrying more threatening tones, will be sent should you choose to ignore their mails. The good side though, is all these follow a specific order and format therefore, you can refer to the IRS for more information regarding each. In general, getting a number of notices means that you have IRS problems that need to be dealt with.

You can send a letter to or contact the IRS if you think that there were erroneous entries in your payables. They can accommodate discussions with you to straighten the issues and possibly, make the needed adjustments. Should you continue to get notices even after paying your dues, you may forward a photocopy of your proofs of payment to the IRS. Just remember that you should keep the original documents for future reference.

If the bill reflects the correct tax due and you are required to pay the full amount, several payment options can be used. If you cannot afford to completely pay for the tax due, you may request to have a payment plan arranged for you. This agreement, however, implies that you have to pay for the debt over a time, you have to be charged with the applicable interests and may be penalized until you are able to pay the full amount.

Alternatives are also available in cases when you really can’t afford to partially pay for your taxes. You may request the IRS to defer their collection attempts for a certain period – this is when you will be considered currently not collective. The negative part of this option though is you still incur interests that will most likely accumulate, ultimately making your IRS problems compound.

An often sought after solution is an OIC, or Offer In Compromise. When given, this allows you to pay only a percentage of the total amount due and the rest of the debt is forgiven. Although statistics imply that you are likely to be denied in your application for Offer In Compromise, submitting such request will be worth the risk as this would effectively end your IRS problem, at least until the next year.

In a number of occasions, all you really need to do is simply contact your local IRS office to settle your IRS tax issues. There is also a significant number of situations when it is wise to consult a professional tax attorney or accountant for advice on dealing with any IRS collections method. Even though you are indebted, the fact still remains that you need to be treated fairly and justly. Just remember that it is to your advantage to respond to any IRS notice. Otherwise, they will resort to enforced collections process, which is much more invasive than the usual notices you will get in the mail.