The IRS has several methods for collecting outstanding tax debt. You’ve received a notice from the IRS that your tax debt, whether personal or business, will be field-collected. You may be wondering what that means and why the IRS is pursuing your tax debt using this particular method. Let’s discuss what field collection is and why your case is being pursued this way.
What is Field Collection?
Field collection is an IRS debt collection method where a case is assigned to a revenue officer (RO). Having your case sent to field collection means it is assigned to an experienced IRS employee who will be hands-on in investigating and recovering your tax debt. Field collections can involve in-person investigations, asset verification, and aggressive enforcement.
Why Was My Case Sent to Field Collection?
There are several reasons your case was sent for field collection. The most common reasons taxpayers are sent to field collection are as follows.
Size of the Tax Debt
High tax debt is one of the biggest triggers for field collection. The IRS prioritizes high dollar amounts and recognizes that recovering large amounts can often require a personalized repayment strategy.
History of NoncomplianceNoncompliance
If a taxpayer or business repeatedly fails to file their taxes, hasn’t complied with the ACS system, hasn’t made payments under an installment plan, or has other noncompliance issues, this is a big red flag for the IRS.
Business and Payroll Tax Issues
The IRS has a low tolerance for businesses with payroll tax delinquencies (Form 941). These cases are rarely a quick fix, requiring in-depth financial analysis and often in-person field investigations.
High Collection Risk or Potential Asset Dissipation
If the IRS believes a taxpayer is moving assets, closing a business, selling property, or otherwise disposing of assets or funds to avoid collection, the IRS wants to act quickly before the taxpayer further jeopardizes their ability to collect.
Having your case sent to field collections is serious, but the experienced tax professionals at Highland Tax Group can help you work with the IRS to resolve your tax debt. Whether it’s negotiating a payment plan or strategizing to pay down your debt quickly, our team is here to help.