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The Collection Process

Pre-requisites for Collection

  • Assessment of Tax - § 6201
  • Notice and Demand for payment - § 6303
  • Notice of Lien - § 6320
  • Notice before Levy - § 6330

Time Table

  • Notice and Demand
  • 10 Days later enforcement authority
  • Four more notices
  • Notice of Lien
  • Notice before Levy
  • Levy

Enforcement Action Permitted

  • Seizure and Sale of Property
  • Backup withholding
  • Garnishment of wages and other
  • Payments

Installment Agreements

  • Fee often required
  • Suspends collection action

Offers in Compromise

  • Fee required
  • Suspends collection action
  • Doubt as to liability
  • Doubt as to collectibility 
  • Effective Tax Administration

Exemption from Levy

  • Unemployment benefits
  • Certain disability benefits
  • Minimum weekly wage exemption