IRS Automated Collections – You have tax debt and are expecting the IRS to start hounding you to collect that debt. The IRS has several methods for collecting tax debt; you may be wondering how the agency decides which method to use and what the differences are. Let’s talk about them and what to expect if you’ve received IRS correspondence to collect on your tax debt.
Automated Collection System
The IRS Automated Collection System (ACS) is precisely what it sounds like – a computer-driven collection operation. This is the most common method and is used for large volumes of simple cases. It does have supporting staff, but these are call center representatives, not IRS tax experts.
If your tax debt is sent to ACS, you will receive an automated notice. If you don’t pay your debt promptly, ACS can take several actions automatically, without requiring approval from IRS staff.
The actions that can be taken include sending notices of intent or final warnings to levy, and levying on wages, bank accounts, and Social Security benefits. Some payment plans can be set up through ACS, but these are the options ACS offers, not a plan negotiated based on your ability to pay.
Collection by a Revenue Officer
For more complex or higher-priority cases, tax debt collection will be referred to an IRS Review Officer (RO). You can expect your case to be sent to an RO if you have a significant tax debt, multiple years of unfiled taxes, or if the IRS suspects asset dissipation, payroll tax issues, or other noncompliance. Your case can also be referred to an RO if you didn’t pay your taxes through the ACS.
An RO may conduct in-person, and potentially unannounced, visits and request detailed financial documents. Review Officers have broad enforcement powers and can compel your cooperation and issue levies and liens. They may also make recommendations to IRS personnel with the authority to perform seizures that your home, vehicle, business equipment, or other physical assets be seized to repay your debt.
Being the subject of IRS collection processes can be scary, but the qualified professionals at Highland Tax Group are here to assist you through the process.