Frequently Asked Questions:

 If you owe the IRS money and do not pay the balance, the IRS typically begins a collection process that starts with notices and may escalate to liens, levies, or assignment of a Revenue Officer. 

 Most IRS collection cases begin with mailed notices informing the taxpayer of the balance due. These letters request payment and explain potential consequences if the balance remains unpaid. 

 The IRS generally has 10 years from the date a tax is assessed to collect the balance. This period is called the Collection Statute Expiration Date (CSED). 

 The statute begins when the IRS officially records the tax liability. This usually occurs when: 

• a tax return is processed 

• an audit assessment becomes final 

• the IRS files a substitute return. 

 Ignoring the IRS can lead to escalating collection actions, including tax liens, wage garnishments, bank levies, and Revenue Officer assignments. 

 An IRS bank levy allows the IRS to freeze and seize funds from a taxpayer’s bank account to apply toward unpaid taxes. 

 Yes. The IRS can issue a wage levy requiring your employer to send part of your paycheck directly to the IRS. 

 An IRS Revenue Officer is a field collection agent assigned to serious tax cases, often involving large balances or business tax liabilities. 

 When evaluating payment options, the IRS reviews financial information to determine a taxpayer’s ability to pay. 

 The IRS accepts an Offer in Compromise when the amount offered equals or exceeds the taxpayer’s reasonable collection potential. 

 Unpaid payroll taxes can lead to IRS enforcement actions and potential personal liability for responsible individuals. 

 Payroll taxes include money withheld from employee wages for federal income tax, Social Security, and Medicare. Because these funds belong to the government, the IRS treats them as trust fund taxes.