The Irs Collection Process Publication 594 (Page 4 of 8) in pdf

Page 4

If you don’t pay on time:

The tax periods we’re collecting on are included in a bankruptcy

•

with an automatic stay. We’ll suspend collection for the time period

Understanding collection actions

we can’t collect because of the automatic stay, plus 6 months.

You request a Collection Due Process hearing. Collection will

•

be suspended from the date of your request until a Notice of

There are several words and phrases particular to the collection process.

Determination is issued or the Tax Court’s decision is final.

Here, we’ve defined some of the most commonly used collection terms:

•

We’re considering your request for Innocent Spouse Relief. Collection

A legal claim against all your current and future

Federal tax lien:

will be suspended from the date of your request until 90 days after

property, such as a house or car, and rights to property, such as wages

a Notice of Determination is issued, or if you file a timely petition

and bank accounts. The lien automatically comes into existence if you

to the Tax Court, until 60 days after the Tax Court’s final decision.

don’t pay your amount due after receiving your first bill.

If you appeal the Tax Court’s decision to a U.S. Court of Appeals, the

A public notice to creditors. It notifies

Notice of Federal Tax Lien (NFTL):

collection period will begin 60 days after the appeal is filed, unless

them that there is a federal tax lien that attaches to all your current and

a bond is posted.

future property and rights to property.

How to appeal an IRS decision

Levy: A legal seizure of property or rights to property to satisfy a tax

You can appeal most collection actions. Your main options for appeals

debt. When property is seized (“levied”), it will be sold to help pay

are the following:

your tax debt. If wages or bank accounts are seized, the money will be

applied to your tax debt.

Collection Due Process (CDP)

The purpose of a Collection Due Process hearing is to review collection

Seizure: There is no legal difference between a seizure and a levy.

actions that were taken or have been proposed. You can request a

Throughout this publication, we’ll use both terms interchangeably.

Collection Due Process hearing if you receive any of the following notices:

Notice of Intent to Levy and Notice of Your Right to a Hearing:

•

Notice of Federal Tax Lien Filing and Your Right to a Hearing

Generally, before property is seized, we have to send you this notice. If

•

Final Notice—Notice of Intent to Levy and Notice of Your Right to

you don’t pay your overdue taxes, make other arrangements to satisfy

a Hearing

the tax debt, or request a hearing within 30 days of the date of this

•

Notice of Jeopardy Levy and Right of Appeal

notice, we may seize your property.

•

Notice of Levy on Your State Tax Refund—Notice of Your Right

Summons: A summons legally compels you or a third party to meet

to a Hearing

with the IRS and provide information, documents, or testimony.

•

Notice of Levy and of Your Right to a Hearing

To request a Collection Due Process hearing, complete Form 12153,

Collection actions in detail

Request for a Collection Due Process or Equivalent Hearing, and send

it to the address on your notice. You have 30 days from the date of the

Federal tax lien: A legal claim against property

notice to request a Collection Due Process hearing. You can also request

an Equivalent Hearing within one year from the date of the notice.

A lien is a legal claim against all your current and future property. When

you don’t pay your first bill for taxes due, a lien is created by law and

Collection Appeals Program (CAP)

attaches to your property. It applies to property (such as your home and

Under the Collections Appeals Program, if you disagree with an IRS

car) and to any current and future rights you have to property.

employee’s decision and want to appeal it, you can ask their manager

to review your case. If you then disagree with the manager’s decision,

Notice of Federal Tax Lien: Provides public

you may continue with the Collection Appeals Program as outlined in

notice to creditors that a lien exists

Publication 1660. Instances in which you can pursue the Collection

Appeals Program include, but aren’t limited to:

A Notice of Federal Tax Lien gives public notice to creditors. We file the

•

Before or after we file a Notice of Federal Tax Lien

Notice of Federal Tax Lien so we can establish the priority of our claim

•

Before or after we seize (“levy”) your property

versus the claims of other creditors. The Notice of Federal Tax Lien is filed

•

After we reject, terminate, or propose to terminate your Installment

with local or state authorities, such as county registers of deeds or the

Agreement (a conference with the manager is recommended, but

Secretary of State offices.

not required)

If a Notice of Federal Tax Lien is filed against you, it’s often reported by

For more information about the Collection Due Process and Collection

consumer credit reporting agencies. This can have a negative effect on

Appeals Program, please see Publication 1660, Collection Appeal Rights.

your credit rating and make it difficult for you to receive credit (such as

a loan or credit card). Employers, landlords, and others may also use this

information and not favorably view the fact that a Notice of Federal Tax

Lien has been filed against you.

The Irs Collection Process Publication 594 Page 4

Related Articles

Related forms

Related Categories