The IRS Collection Process

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tax debt

How does the IRS collect on past due tax bills? They will always send you a bill in the mail. They will NOT call you unless you are working with them directly and only if you have a revenue officer, officer examiner, appeals officer, or a TAS representative. 

The IRS collection process goes as follows: You will receive the first bill after you file your tax return. If you don’t make payment arrangements with the IRS, then you will continue to get billed. The final letter will be an intent to levy or garnish you. These letters are the CP 504’s and the final LT 11 bills. If you happen to be getting social security you will want to watch out for CP 90 or CP 91 bills. Those are the last two bills you will get before the IRS will garnish your social security. 

You will want to call or act right away. Once you receive these letters the next steps the IRS will take will be in the form of garnishments. They can also bank levy you and take any proceeds you have in any bank account. 

This is why it is vital for you to NOT ignore any IRS letters you receive. You may hear people say it takes the IRS a long time to catch up with you. In some cases it can be true, however, you do not want to drag it out and ignore the situation. Keep in mind daily compounded interest will continue to add up until the tax balance is paid off. 

If you have questions or need help understanding the BEST WAY to manage your tax debt please give us a call/text. We will be happy to consult with you and explain to you the options available. 

Till next time!