Strategies and How the IRS Collection System Works

IRS collection system is an internal revenue service to enforce collection actions. If taxes are late and the IRS received no reason about the delay of taxes, the law necessitates an enforcement action that may include the following things. It will help you to understand How the IRS Collection System Works?

• Issuing a Levy notice on incomes and salary, property and bank accounts (officially snatch properties to satisfy current tax debt)
• Assessment of recovery penalty of the trust fund may be considered for the payment of outstanding employment taxes. 
• Issuing summons to 3rd parties or taxpayer to secure information to prepare unfiled returns and determine the ability of the taxpayer to pay the tax debt

For the collection of delinquent debts, particular federal payments, such as federal worker travel, federal salary, SSA, OPM and vendor disbursed by Treasury Department. The BFS (Bureau of Fiscal Service) may get levy via FPLP (Federal Payment (disbursement) Levy Program).

Employment Taxes

The total amount of employers must withhold from income, medicare taxes and income of employees. The medicare taxes are known as a trust fund and withheld taxes. The amount of medicare taxes and social security taxes can be paid on behalf of every employee.

Payment of employment late employment taxes may result in extra interest and penalties on the unpaid balance. If you are failed to deposit penalties, you have to pay almost 15% of your total amount. People can get enrollment in making current deposits through EFTPS (electronic federal payment tax systems). This updated system is good for the assistance of employers to fulfill their payment requirements.   

Numerous taxpayers often get frustrated while dealing with automated IRS collection system (ACS). After a long wait, the taxpayers will get inflexible options to resolve their balances because of IRS. After getting a stalemate with ACS, the taxpayer often consider it better to hire professionals for their help in resolving their tax problems. If you want to resolve tax issues, you should have the best strategies to deal with their procedure.    

Establish Rapport

If you want to get flies, you have to use honey instead of vinegar. Same goes for this procedure because if you want to make it easy for you, it is important to establish and good rapport. Instead of collecting negative feelings in your mind about taxes or IRS, you have to realize that you are not alone. You can’t blame the people on the other side of the phone because they are human too. They have families and lives outside of the IRS collection system. Numerous people work for IRS for their love for the country and public service. They truly have a thankless job. People curse them, yell at them and pass bad comments on them. You can imagine the trepidation before taking every other call and deal with the person on the other side. If you want to make a call to IRS, it is essential to disarm your hostility. You should thank them for taking your call.  

Know the Actual Game Plan and Take charge of Conversation

As you call IRS automated collection system, keep it in mind that you will talk with someone who has the ability to impact your monetary situation. This person is responsible for dealing with hundreds of cases in a month and has sufficient experience. It means that this call is most important for you. You have to be straightforward and prepare your story before you make a phone call. Keep it in mind that you want a representative who can give you an ultimate resolution. For instance, instead of telling the person on the other side that you have to set up a payment plan, you should tell them you need to set up your payment plan on $300 per month. Instead of asking time for adverse collection activity, ask for 2 extra weeks and promise that you are serious about resolving your accounts within this period. 

You should have a conversational tone and clearly defined objective of your call. The representative of IRS automated collection system will surely grant your request and have a good commencing point for you in negotiation. This will be a good way to solve your tax issues.