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. |
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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