Tax Tips

IRS Collection Process

By September 27, 2019 No Comments
Income Tax

Orange County – IRS Collection Process

When clients come to our office in Orange County, CA stressed about the daunting task of having to deal with their taxes, the first step we take is to find out where they are in the IRS collection process. Once we find out where they are in the IRS collection process, we can then help put together a plan to start tackling the IRS or state. The following is an overview of the IRS collection process that we use to help us find out where our clients stand with the IRS.

  1. Tax gets assessed. This can be done by either the IRS, or the taxpayer. Either the IRS filed a substitute for return or SFR, or the taxpayer filed a return with balance.
  2. Tax Notices get mailed out, with the bill never being paid. A whole variety of scary tax notices come in the mail demanding payment.
  3. If the tax assessed is over $10,000 the IRS will eventually file a Notice of Federal Tax Lien. This come with a whole bunch of marketing mail from national IRS help companies, and it kills the taxpayers credit score.
  4. Taxpayer has appeal rights also known as CDP or Collection Due Process hearing. However, these appeal rights only last 30 days from the date on the notice of intent to levy notice.
  5. The IRS can then begin seizing the taxpayer’s assets. Wages, bank and clients who owe the taxpayer money are all fair game for the IRS.

First step to take in resolving your tax debt is to face it.  We at EA Tax Resolutions specialize in helping taxpayers in Orange County settle tax debt with both the IRS and State. If you or someone you know has issues has tax issues with either the IRS or State please contact our office to start the process of resolving your back taxes.

Anthony Fontana, EA

EA Tax Resolutions

4630 Campus Dr. #203

Newport Beach, CA 92660

Ph. (800) 245-0596