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Exploring the IRS Collections ‘Mystery’

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In the first of a two-part series related to the IRS Collections, and how they work, Craig Smalley, EA shares his views and experiences in an attempt to shed light on "the mystery" behind this unit and its processes.

May 18th 2022
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IRS Collections is an enigma and a different kind of animal from the rest of the IRS.  There are hard and fast deadlines that must be met or the taxpayer can lose their rights. 

What typically happens is that you acquire a collections client when these deadlines have passed. To protect the IRS’s interests they will typically file a tax lien against the taxpayer and that is when they will contact you.

Dissecting the Collections Process 

Depending on the situation, with a lien the IRS can take a number of collection actions. However there are ways to stop these actions. The actions they can take is garnishing wages, garnishing accounts receivable, levying bank accounts, putting a lien on a house and in certain states they can even seize the house. 

However, there are many ways to stop these actions. A majority of collections are handled through Automated Collections System or ACS, an automated system that works in 30-day increments. 

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