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IRS Tax Debt Collection In 7 Steps

This entry is part 2 of 2 in the series Tax Representation

IRS Tax Debt Collection

How does the Internal Revenue Service collect a tax debt? They usually follow seven separate steps, but it doesn’t begin until the IRS has made a tax “assessment.”  The Service must send you notification that there is an outstanding balance due. This surprise announcement of “tax debt” typically comes as IRS Form CP2000 or CP2501. This first step is critical in marking the start of the “collection process”.  If you receive a letter from the IRS or either of these forms shown below, it might be a good time to seek outside help from an experienced tax practitioner before you talk to any IRS representative.  Continue reading