Resolution of Back Taxes – Collection Actions of the IRS

Last updated on August 29, 2023

When the IRS discovers that an individual owes taxes, they will begin efforts to collect on the debt. There are various kinds of collection actions the IRS uses, including sending notices, federal tax liens and, eventually, a levy. It’s important to take seriously the initial notices which the IRS uses to inform of the amount of tax debt, and suggest methods of payment.

After notices are sent, the IRS can proceed to a tax lien. This is an aggressive collection action which the IRS can employ if notices remain unanswered or if the taxpayer has not made satisfactory efforts to resolve the debt.

The IRS files a public notice after the placement of a lien to alert creditors of the unpaid taxes, which can impact a taxpayer’s ability to get approved for credit and compromise employment opportunities. A levy occurs when the IRS seizes property and/or assets to satisfy the tax liability.

By responding to IRS notices and making resolution efforts in a timely fashion, taxpayers can avoid facing damaging IRS collection actions.