The moment a balance is determined, a notice will be generated. Once the first notice of a balance due is sent, the IRS Collection process begins. These collection actions will continue until your account is paid in full or until the 10-year time period that they can legally collect the tax liability expires. An expiration date is determined for each year that a balance is due. This is known as a Collection Statute Expiration Date, or CSED.

The interest rates and fees from a bank will be lower than those charged by the IRS. You are also encouraged to make voluntary payments. Payments can be made online or by mailing in a check or money order to the address listed on your tax bill. All payments must be made out to the Department of the Treasury. Be sure to include your social security number, the Form 1040 (individual income tax) and the years that a balance is present. The Form number may vary depending on the type of tax that is due. Sending payments that are affordable to you at the time can show the IRS that you are at least attempting to become compliant. Voluntary payments will not always keep your account safe from collections, but it will show that you are doing what you can and not willfully neglecting the fact that a tax liability is present.

You can establish the agreement online for roughly around $10.00. If you call in to set up the Installment Agreement, the user fee will be $225.00. You also have the option to submit a Form 433-D, direct debit. This form allows the IRS to take payments right from your bank account. A direct debit one-time user fee will be $107.00. In the case where the IRS deems you as a low-income taxpayer, your user fee will be reduced to $43.00. If you are a low-income taxpayer and choose to submit a direct debit form, then in most cases your fee will be waived entirely.

This does not mean that your liability goes away. You are still at fault for the full amount of liability that is on your account. A currently Non-Collectible status simply means that through the submission of financials you cannot pay. The IRS will delay collection action on your account until your financial condition improves. The IRS will do a review of your account every two years when placed into currently non collectible. You may or may not need to provide updated documents when this review happens. Updated information is vital to show that you remain in a financial hardship and are unable to afford a payment. If the IRS can see that your financial status has improved, then they will request a payment from you.

Do not wait for the collection actions to get this far before searching options to resolve your account. Do your due diligence in hiring a competent firm, like Omni Tax Help, to assist you in resolving your tax problems. A team of trained experts can help review your financial info and decide the best resolution for you. Having a team of professionals on your side can also give you the confidence to know that you will not be taken advantage of. As the taxpayer do have rights. Before dealing with the IRS it is best to know them.