Over the past several years as taxpayers have endured the Great Recession the IRS has escalated the number of federal tax liens filed against delinquent taxpayers. The IRS aggressive use of liens has been criticized by the National Taxpayer Advocate in her annual report to congress and the IRS Advisory Council in its annual report to the Commissioner. IRS recently announced a new, more flexible attitude in policies and programs to help taxpayers pay back taxes and avoid tax liens.
Robert E. McKenzie recently contributed to Forbes’ “IRS Watch” section in an article, “Afraid to File Your Return Because You Owe IRS? Here’s How IRS Collects Delinquencies.”
Mr. McKenzie explains that the IRS Collection Division attempts to collect delinquent taxes as inexpensively and rapidly as possible using automated methods. He then outlines the IRS’s four-level system of collection, the Regional Compliance Centers which process the filed tax returns, the IRS procedure for business taxpayers’, small dollar payment plans, among other key information. Mr. McKenzie’s recommendation is to be proactive when you owe the IRS: “Not filing your return on time (or with an extension) will cause even greater penalties.”
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