College of Law :: Georgia State University

The Collection Process

As a prerequisite to collection, the IRS must assess the tax.  IRC §6202.  An assessment is the recording of a tax liability into the IRS system on Form 23-C (Assessment Certificate).  IRC §6203.  The information recorded includes the  taxpayer's name, social security number, year in question and the amount and type of tax involved.  The date on which Form 23-C is signed is called the assessment date.  This date is important because it triggers two statutes of limitations: (1) notification of the taxpayer and (2) collection of the tax.  The IRS must notify the taxpayer of the assessment within 60 days from the date of assessment.  Also, the IRS has 10 years from the assessment date to collect the tax.  IRC §6502(a)(1).

The IRS must next send a Notice and Demand to the taxpayer.  Usually, the IRS will send the first notice and demand for payment 10 days after the date of assessment.  If the taxpayer does not respond to the first notice, then the IRS may send up to three more notices.  IRC §6303.

Finally, if no resolution is made from the previous notices, the IRS will send a Final Notice of Intent to Levy or a Notice of Federal Tax Lien Filing.  IRC §6330 and IRC §6320.  These notices will include information on requesting a collection due process hearing.  See the section on Collection Due Process for more information.

If the taxpayer fails to respond to these notices, the IRS may then levy property.  To satisfy a tax liability, the IRS may levy property, seize and sell the property, file a tax lien, take withholdings and garnish wages and other payments.  Some taxpayers do not come to the Clinic until the IRS has begun these.

Resources

• Appeals Conference
• Collection Appeal Procedure (CAP)
• Collection Due Process (CDP)
• Statute of Limitations - Assessment
• Statute of Limitation - Collection
• Installment Agreement
• Offers in Compromise

Internal Revenue Code

IRS Forms and Publications