IRS Collection
The word IRS Collection often scares many
tax payers. Most people do not know enough about the IRS
collection process or how to deal with IRS collections. There
are IRS time limits on collection so don't panic if you are
facing an IRS collection. We will discuss what to do in case of
an IRS collection and how to avoid IRS collections on our
IRS Audit website.
How to avoid an IRS collection?
The best way to avoid an IRS collection is
to take action before you receive the final notice from the
IRS. When you first receive a notice from the IRS (the first
notice from the IRS), respond immediately to try to resolve the
problem. If you have not responded to the IRS' first notice,
you will have a second chance to respond to other notices from
the IRS. If you wait until the final notice from the IRS is
received, you may not be in time to avoid the IRS collection
that probably will come shortly.
How to respond to IRS notices?
When responding to the IRS notices, you
should do so in writing and mail to the address at the top of
the IRS notice you are responding. Use certified mail and return receipt requested.
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In your
response to the IRS notice, you must explain to
the IRS why you cannot pay taxes in full and
that you need an installment agreement. You can
also include the Installment Agreement request
form (IRS tax form 9465). You should say in
your letter to the IRS how much taxes you can
pay each month.
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What to do if I failed to respond to the final
notice and the IRS collection is already in progress?
If you are already facing an IRS collection,
contact the Taxpayer Advocate's office. If you have failed
repeatedly to repsond to the IRS notices, do not contact them
at this point. Instead, you should contact the Taxpayer
Advocate's office immediately. The Taxpayer Advocate or TA is a
liaison between the IRS and the taxpayers. The Taxpayer
Advocate can help you with your IRS collection. You should
write a letter to the Taxpayer Advocate at the address of the
IRS's main office in your state. Include a copy of the final
notice you received from the IRS in your letter to the Taxpayer
Advocate.
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