The Internal Revenue Service (IRS) is a powerful and historically unrelenting creditor. The Internal Revenue Code grants the IRS extraordinary powers to enforce tax collection. The IRS has greater collection powers than those possessed by private creditors, which are usually required to obtain a judgment in court before forcibly collecting from a debtor.

1. IRS Enforced Collection Actions and Alternatives to
Enforced Collection.

2. IRS Enforced Collection Actions
The Internal Revenue Service is a powerful and historically unrelenting creditor. The Internal
Revenue Code grants the IRS extraordinary powers to enforce tax collection. The IRS has
greater collection powers than those possessed by private creditors, which are usually required
to obtain a judgment in court before forcibly collecting from a debtor.
The enactment of the IRS Restructuring and Reform Act of 1998 afforded taxpayers firm rights
when the IRS seeks to collect unpaid taxes. However, many taxpayers are unaware of these
rights and how to protect themselves from the actions the IRS can take against them.

3. The Federal Tax Lien
Generally, if you owe $10,000 or more to the federal government, the IRS will
automatically issue a Federal Tax Lien against you. A tax lien is put in place
after you fail to pay the assessed amount within ten days of receiving a Notice
and Demand for Payment. The resulting tax lien is enforceable against all
property and rights to property belonging to you. The IRS files a public
document called a “Notice of Federal Tax Lien.”
A Federal Tax Lien does not mean your property will be seized. The IRS
is required to send a “Notice of Intent to Levy” before seizure.

4. The Federal Tax Levy
A levy is the seizure of your property to satisfy delinquent tax debt. When you fail to
make arrangements to pay your tax debt, the IRS will send a “Final Notice of Intent
to Levy.” You have 30 days to respond. After that, the IRS can levy you at any time.
The IRS has the power to seize your physical property like your home or car, but also
property that is yours but held by someone else, like your wages, bank accounts or
rental income.

5. Wage Garnishment
The IRS can garnish your wages for collection of your federal tax debt. Wage
garnishments are a type of IRS levy.

6. Alternatives to Enforced Collection
To prevent or stop forced collection action, you must take steps
to resolve your tax debt. Professional help is often very beneficial
for taxpayers seeking to resolve their tax debt. A licensed tax
professional can request that your account to be marked as “not
collectible,” arrange an installment agreement, submit an offer in
compromise, or request innocent spouse relief.

7. When your account is marked “not collectible,” the IRS will not
pursue enforced collection actions. However, this does not mean
that the debt is forgiven. The tax liability remains due and continues
to accrue interest and penalties for the remainder of the statute of
limitations on collection. The IRS will periodically review your
financial situation and, if they see that your situation has improved,
will return your account to active collection status.
Currently Not Collectible Status

8. Installment Agreement
Installment agreements allow you to pay your tax debt over time. There are
many different types of installment agreements. A licensed tax professional
can help in arranging an installment agreement that best fits your situation.

9. Offer in Compromise
In an offer in compromise, the IRS agrees to settle for an amount that is less
than what is owed. The IRS will settle a tax debt for one of the following three
reasons: doubt as to liability, doubt as to collectability, and effective tax
administration.

10. Innocent Spouse Relief
If your spouse is solely responsible for your tax debt, you may be eligible for
innocent spouse relief, separation of liability or equitable relief. If granted, these
programs may partially or entirely relieve you of responsibly for the tax liability.

11. Withdrawal, Subordination, Discharge, or
Release of an NFTL
A federal tax lien is not extinguished until you fully satisfy your tax liability. However,
in certain circumstances, a federal tax lien can be withdrawn, subordinated or
released even if you had not fully satisfied your tax liability.

12. To Learn more
Visit
www.taxdefensenetwork.com
Or call
(800) 691-5390