How many different ways can the IRS try to collect taxes I owe?
- David Greene
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This is a good question, but one that cannot be answered in a short space. I will just discuss the primary methods. When one does not pay her taxes, she will first receive a friendly letter stating that she has overdue taxes and asking her to pay them in full. This letter usually comes within six months to a year after the due date. If she ignores this letter, her file will then be assigned to the ACS (Automatic Collection System) branch and she will begin receiving a series of letters, each one more threatening than the last. The last letter is sent certified mail and states “FINAL NOTICE OF LEVY.” Thirty days after the date on this last letter, the IRS can seize the money in her bank account and/or levy (garnish) her wages. Another method of collection is a lien. This is a document recorded at the Courthouse stating that the taxpayer owes the IRS and any money due the taxpayer from the sale of property must be paid to the IRS up to the amount of the debt. A third method for those who continue to ignore the IRS is the seizure and sale of property.