When initial contacts by the Internal Revenue Service (IRS) do not result in the successful collection of unpaid tax, the IRS has the authority to attach a claim to a taxpayer’s assets with a Letter 3172, Notice of Federal Tax Lien Filing and Your Rights to a Hearing Under IRC 6320 (lien). This is usually…
The IRS Automated Collection System
The IRS Automated Collection System or ACS is a critical part of the IRS’s overall Collection program. It plays a vital role in securing and protecting the revenue of the United States. Its work with delinquent taxpayers is a major factor in determining the IRS’s success in meeting the Collection program’s mission, which is: To…
The IRS Collection Phase Process
The Internal Revenue Service (IRS) uses a three-phase strategy for collecting unpaid tax liabilities until they are either full paid, determined to be uncollectible, or otherwise resolved. Each phase is worked by different program offices and IRS employees with increasingly higher technical skills. Notice Stream Phase The Notice Stream Phase uses a preset number of…
Frozen IRS Account Conditions
The Internal Revenue Service’s (IRS) Master File computer system uses coding to identify special situations, commonly referred to as freeze conditions. This term identifies a condition that either requires special handling by the IRS or for which the IRS is awaiting the outcome of a future event before returning to normal processing. There are more…
IRS Tax Lien Notice – Form 668(Y)(c)
The Internal Revenue Service (IRS) attempts to collect Federal taxes due from taxpayers by sending letters, making telephone calls, and meeting face-to-face with taxpayers. The IRS has the authority to attach a claim, commonly referred to as a Federal tax lien, to the taxpayer's assets for the amount of unpaid tax when the taxpayer neglects…
Common Refundable Tax Credits
Refundable credits are designed to help low-income individuals reduce their tax burden or to provide incentives for other activities. The number of these credits has varied over time because some credits are available for a limited period that is set by law. The two largest refundable credits designed to help low-income individuals are the Earned…
Houston Tax Law 