Tips to Stop IRS Collection

IRS is a United States federal government agency that is authorized to collect income taxes and to administer the Internal Revenue Code. It is under the Department of Treasury and is led by the Commissioner of Internal Revenue Service, who is appointed by the President of United States for a period of 5-years. 

If a business generates profits, taxes should be paid. The Internal Revenue Service (IRS) requires owner operators to estimate the profits of their business and make quarterly estimated tax payments as needed. Savings for quarterly estimated tax payments requires discipline and understanding. If you have past due taxes, a little knowledge and the right Enrolled Agent can help resolve your debts with the IRS.

What Triggers the Tax Collection Process?

  • A tax return not filled on time.

  • A taxpayer cannot afford to pay their entire tax bill.

  • Penalties added to the tax have not been paid.

  • If there is unreported income the IRS will adjust your account and taxes will be due..

IRS Collection Process:

After sending a final reminder through the mail, the Internal Revenue Services will start the collection process until the debt is paid. There are many ways the IRS may try to enforce collections. To read more about the IRS go to:

Tax Lien

A tax lien is a procedure in which the IRS attaches a lien on all your property to protect their right to settle the debt if you sell any of the property they lien. A tax lien gives the IRS control to collect the tax debt you owe when you sell an asset with a lien on it. They will directly receive the payment if you try to sell the item and you will not receive any proceeds until you have cleared your debts. There is no paperwork, no judge, no hearing to challenge the tax lien. It just exists and comes into play if you ignore the IRS when you fail to pay your tax liabilities. 

Tax Levies

A tax levy is a process in which the IRS will seize your property.  Once a levy is imposed, you have a certain time frame, typically 20 days, to try and resolve the issue.  A taxpayer has the right to request a hearing to appeal the IRS levy.


IRS can seize the following personal property, though it’s not limited to this list, and sell it accordingly.

  • Cars,

  • Boats,

  • Luxury items,

  • Homes,

  • Businesses,

  • Vacation properties,

  • Other real estate.

You are allowed to keep only the necessary clothing, some food, fuel, personal effects and tools that are necessary for making a living. Different types of accounts which are seized by the IRS are: 

  • Checking accounts,

  • Savings account,

  • Pension,

  • Individual retirement account,

  • Stocks,

  • Bonds,

  • Accounts receivable.


Tax Penalties: 

The methods mentioned above are only to make sure your debt is paid. Tax penalties add on to the debt and make it difficult for the taxpayer and easier for the IRS to seize the assets. Below are the actions the IRS can penalize you for:

  • Not filing a tax return,

  • Not paying taxes or not paying the full amount

  • Under reporting your income on a tax return

  • Filing an inaccurate tax return

  • Not complying with IRS tax rules

  • Tax fraud

Resolving Tax Problems:

Tax Penalties: 

Tax penalties can be removed by showing reasonable cause for being late. The cause can include:

  • You showed Ordinary Business Care & Prudence

  • A sudden death or serious illness in your family.

  • Fire, Casualty Loss or Natural Disaster

  • IRS employer error

  • Unable to Obtain Records

  • Mistake was Made

  • Erroneous Advice or Reliance

  • Ignorance of the Law

  • Forgetfulness

Tax Liens:  

If you convince the IRS that you can pay your tax debt if a lien is removed, they may allow a lien subordination if they know the tax will be paid in full. Or, you can file a case in court stating

  • The tax debt has already been paid

    1. You were bankrupt when the lien was filed

    2. Proper procedures were not followed by the IRS Officials


Tax Levies and Wage Garnishment: 

You can remove a tax levy and wage garnishments by making arrangements with the IRS to pay the taxes or by setting up an installment plan. Installment plans may require a lower payment than an amount deducted by garnishment from a taxpayer’s income.

For proper tax planning and solving IRS tax problems, you should refer to a company that is experienced and familiar with all the circumstances that one might have to face while dealing with IRS. Palm Beach Tax Group can help resolve most IRS problems.  They make sure that your problems don’t end up making you lose sleep at night.  They put the relaxation in taxation when it comes to the IRS. Contact Palm Beach Tax Group today at 561-655-5777 or fill out our contact form at  

Disclaimer: Blogs and articles by Palm Beach Tax Group are for educational purposes only and to give you a general understanding of the law, not to provide legal or tax advice or be used as a substitute for competent tax and financial assistance from a licensed, professional in your state or jurisdiction.

Use all blogs and articles at your own risk. The information presented may not reflect the most current legal developments or tax laws. These materials may be changed, improved, or updated without notice. Palm Beach Tax group is not responsible for errors or omissions in the content of this site or for damages arising from the use or performance of this site under any circumstances.