IRS levy, IRS audit. IRS problems, IRS wage garnishment, IRS help, IRS relief, IRS lien, IRS garnishment, IRS audits, IRS liens, IRS wage levy, IRS problem, IRS representation, IRS payment plans, owe IRS, IRS trouble, IRS audit help, IRS questions, former IRS agent, IRS levy relief, IRS garnishments, IRS solutions

IRS Collections Part 1

IRS Collections
Please Print the Following Before Watching Video
Must have "Adobe Reader" to read PDF Files. If you don't have it, download here!

Filled in Form 433-A

National Standards: Food, Clothing and Other Items (From IRS Web Site)

National Standards: Housing and Utilities (From IRS Web Site)

Local Standards: Transportation (From IRS Web Site)

IRS Practitioner Priority Line: 1-866-860-4259

Liens & Levies / IRS Collection
When the IRS wants to collect taxes owed, it can file a federal tax lien. The lien is a public record of what you owe and a detriment to your credit status. The IRS levy is imposed to actually collect the money. With a levy, for example, the IRS can take money out of your saving and checking accounts. Liens and levies are very serious.

Seizures & Wage Garnishments / IRS Collection
The IRS has the power to seize personal or business assets in payment for unpaid taxes. They can also garnish your wages. In this case, the IRS places a wage garnishment with your employer and takes a large percentage of your paycheck until the tax liability is paid. If you are in business, the IRS can seize your business assets, which can jeopardize the health of your business.

If the IRS collection division has imposed a collection of any type on your client, he or she will need help immediately. work with the IRS on their behalf to negotiate a payment plan and releases of the liens, levies, garnishments, etc.

Here is How it Works

When your client owes the IRS money, he or she will receive a notice, an invoice from the IRS, to pay the amount due. There are two methods to resolve this issue:

1. Establish a monthly payment plan with the IRS
2. Submit an Offer in Compromise

Please note: If your client hasn't filed his or her taxes for one year or several years, the IRS may prepare a "Substitute for Return" on behalf of your client and assess the tax due. In order to establish a payment plan or submit an Offer in Compromise, your client needs to be in full compliance. By that I mean that he or she needs to file all unfiled returns and be in full compliance.

If your client hasn't filed or doesn't remember, call Practitioner Priority Line and ask. You may also ask them to fax you an "Account Transcript" for any year. The account transcript will include the date the return was filed or "SFR" if the case may be. Amount owed. Any payments applied, and so on.

Offer in Compromise Section - Unfiled Returns Section.

One more thing I'd like to mention is "ACS" or a "Revenue Officer". "ACS" is a division within the IRS that issues notices to taxpayers on unpaid taxes. This department will issue notices such as "Final Notice of Intent to levy". If this is the case, you'll need to contact the number on the notice and not the IRS Practitioner Priority Line: 1-866-860-4259. However, always keep in mind that the IRS Practitioner Priority Line can always assist you in any matter and guide you on any issue.

Revenue Officer: A Revenue officer works with the Collection Division of the IRS. They are skilled in collections and highly trained by the IRS to collect unpaid taxes. They work from local offices and contact local taxpayers. If your client receives a notice from a Revenue officer, then you'll need to contact that person.

How to Establish a monthly payment plan with the IRS

First and foremost, your client needs to be in full compliance. All returns need to be filed! Fill out form 433-A for individuals, or Form 433-B if you're representing a corporation or a partnership in full. Make sure to ask your client for the following documents since they are required by the IRS:

Attachments Required for Wage Earners and Self-Employed Individuals
Copies of the following items for the last 3 months from the date this form is submitted (check all attached items):

Income - Earnings statements, pay stubs, etc. from each employer, pension/social security/other income, self employment income (commissions, invoices, sales records, etc.).

Banks, Investments, and Life Insurance - Statements for all money market, brokerage, checking and savings accounts, certificates of deposit, IRA, stocks/bonds, and life insurance policies with a cash value.

Assets - Statements from lenders on loans, monthly payments, payoffs, and balances for all personal and business assets. Include copies of UCC financing statements and accountant’s depreciation schedules.

Expenses - Bills or statements for monthly recurring expenses of utilities, rent, insurance, property taxes, phone and cell phone, insurance premiums, court orders requiring payments (child support, alimony, etc.), other out of pocket expenses.

Other - Credit card statements, profit and loss statements, all loan payoffs, etc. A copy of last year’s Form 1040 with all attachments. Include all Schedules K-1 from Form 1120S or Form 1065, as applicable.

Once the 433-A is filled out and all statements are obtained, call either the Practitioner Priority Line, ACS, or the Revenue Officer. Make sure you have a Valid Power of Attorney.

Page four of the 433-A is an income and expense statement. The difference, "Disposable Income", between the total monthly income and the total living expenses is what the monthly payment will be. It is that simple.

Note: If your client's mortgage, rent, or auto payment exceeds the allowable national standards, the IRS will not allow the higher amounts They will only allow up to the national standards. The difference is what they'll have to pay in addition to the disposable income.

Submit an Offer in Compromise

in most cases, the submission of an Offer in Compromise will halt all collection activities. Please refer to the "Offer in Compromise" section of this site to learn all about it.


If you're unable to resolve an issue with a Revenue officer or ACS, you might want to file Form 911, (Request for Taxpayer Advocate Service Assistance).

Form 911 is created for the following:

(1) The taxpayer is experiencing economic harm or is about to suffer economic harm.
(2) The taxpayer is facing an immediate threat of adverse action.
(3) The taxpayer will incur significant costs if relief is not granted (including fees for professional representation).
(4) The taxpayer will suffer irreparable injury or long-term adverse impact if relief is not granted.
(5) The taxpayer has experienced a delay of more than 30 days to resolve a tax account problem.
(6) The taxpayer did not receive a response or resolution to their problem or inquiry by the date promised.
(7) A system or procedure has either failed to operate as intended, or failed to resolve the taxpayer's problem or dispute
within the IRS.
(8) The manner in which the tax laws are being administered raise considerations of equity, or have impaired or will impair the taxpayer's rights.
(9) The NTA determines compelling public policy warrants assistance to an individual or group of taxpayers (TAS Use Only).



Visit our Community for further discussions!


Important IRS Links


View all Topics
Take Your Test. Click here!
Pass & receive your certificate to frame on the wall!

IRS expert certificate


IRS levy, IRS audit. IRS problems, IRS wage garnishment, IRS help, IRS relief, IRS lien, IRS garnishment, IRS audits, IRS liens, IRS wage levy, IRS problem, IRS representation, IRS payment plans, owe IRS, IRS trouble, IRS audit help, IRS questions, former IRS agent, IRS levy relief, IRS garnishments, IRS solutions