IRS Collections Archives - Page 7 of 9

IRS Tax Lien Release – Part Two – Lien Withdrawal

May 25, 2026October 19, 2013 by Brotman Law

Continued from IRS Tax Lien Release – Part One – Avoiding a Lien

Key Takeaways

Once the IRS tax lien is in place, it generally will not release it unless the balance owed is paid in full or there is another justification for removing it (such as it was filed erroneously or is for a year that is no longer subject to collections).
Lien withdrawal is one remedy that taxpayers can seek from the IRS. If possible, you want to try to get liens withdrawn than simply released or subordinated.
Additionally, taxpayers can get a lien withdrawn after the fact by entering into a direct debit installment agreement with the IRS.

IRS Tax Lien Release – Part One – Avoiding a Lien

May 25, 2026October 19, 2013 by Brotman Law

Introduction to IRS Tax Lien Release

One of the biggest debates in the tax practitioner community is the efficacy of IRS tax liens. On one hand, IRS tax liens help the government protect its interest in a taxpayer’s property and secure the underlying tax obligation with real or tangible personal property. On the other hand, liens damage a taxpayer’s credit, place an obstacle in the way of the taxpayer selling that property or borrowing against it in order to pay off their liability, and generally do nothing to satisfy the immediate concern of the IRS. Furthermore, it is extremely difficult to get a lien release and liens are a noted hassle to dispose of once they have been filed against a taxpayer. However, there are a number of things that the taxpayer can do if they are affected by a federal tax lien in order to secure a lien release or achieve some other workable solution that allows them to make progress on the account. After all, the IRS is simply seeking a workable resolution to the problem.

Key Takeaways

One of the biggest debates in the tax practitioner community is the efficacy of IRS tax liens.
First of all, although it may go without saying, the easiest way to not have to worry about federal tax liens is to not get them in the first place. Being compliant with your federal tax obligations is a one hundred percent guaranteed way to avoid a tax lien.
Along those lines, the IRS generally does not go through the trouble of placing a lien on taxpayers who owe smaller liabilities.

Tax Payment Plan Criteria: How to Get Approved

May 25, 2026October 16, 2013 by Brotman Law

Introduction to Tax Payment Plans

When an individual cannot pay the full balance owed to the IRS, one of the most common solutions is to get that taxpayer set up on a tax payment plan. However, payment plans are not a matter of right, and taxpayers must meet several requirements in order to get their tax payment plan approved. It is important that to be aware of these criteria, as making sure you have met all of the requirements in advance will help expedite the approval of your IRS payment plan.

Key Takeaways

First, the IRS does not prefer that taxpayers finance their tax obligations.
These time frames can also vary based on the size of your liability.
Furthermore, the IRS will require that the taxpayer is up to date on all current year payments and has filed all outstanding returns.

Tax Levies and Property Exempt IRS Levy

May 25, 2026October 7, 2013 by Brotman Law

Introduction to Tax Levies

The IRS can be fairly aggressive when it comes to adverse collection action. The IRS uses certain tactics to usher taxpayer compliance and to reduce the size of balances that are owed on taxpayer accounts. Tax levies are one of these collection tactics. The general rule with tax levies is that the IRS can levy all property that belongs to the taxpayer in order to satisfy the outstanding obligation. However, certain property is exempt from an IRS levy and cannot be seized by the IRS.[1]

Key Takeaways

The IRS can be fairly aggressive when it comes to adverse collection action. The IRS uses certain tactics to usher taxpayer compliance and to reduce the size of balances that are owed on taxpayer accounts. Tax levies are one of these collection tactics.
This list of property is codified under Internal Revenue Code (IRC) § 6334.
2. Personal items, personal care items, fuel, furniture, and personal effects.

Payment Plans: Partial Pay Installment Agreements

May 25, 2026October 6, 2013 by Brotman Law

Introduction to Partial Payment Plans

The IRS expects that taxpayer will pay any back taxes that are owed in full at the time that they are due or will get on a payment plan for the amount in question. However, the IRS does not like to wait long for funds and payment plans are generally granted only in circumstances where the taxpayer can set up a payment plan to pay the balance owed, plus applicable penalties and interest within five years or prior to the expiration of the Collection Statute Expiration Date (CSED), whichever is first. However, there are some instances where this is not possible and the IRS is forced to consider the alternative. In these instances, the IRS will sometimes consider a partial payment plan for the taxpayer.

Key Takeaways

The IRS expects that taxpayer will pay any back taxes that are owed in full at the time that they are due or will get on a payment plan for the amount in question.
Partial payment plans and the IRS’s authority to consider them is a fairly recent development. The IRS was not previously able to consider partial payment plans and instead would just resort to adverse collection measures.
All that considered, partial payment plans are difficult to come by based on the fact that the IRS is essentially giving up on collecting the full balance owed.

IRS Payment Plan Requests – Form 9465-FS

May 25, 2026October 5, 2013 by Brotman Law

Introduction to IRS Payment Plans and Form 9465-FS

There are numerous options available to a taxpayer trying to resolve a balance due with the IRS.[1] One of the more prevalent options is to work out an IRS payment plan to pay down the liability in installment payments. When a taxpayer sets up a payment plan, they agree to make a specified monthly payment over a set period of time based on their ability to pay (as calculated by the IRS). In exchange for the taxpayer entering into their IRS payment plan, the IRS agrees to hold off on any adverse collection activity, including wage garnishments or bank levies, for the life of the installment agreement. Taxpayers can make a request for a IRS payment plan by filing IRS Form 9465-FS with the IRS.

Key Takeaways

There are numerous options available to a taxpayer trying to resolve a balance due with the IRS.
Form 9465-FS is only appropriate in certain circumstances and I have some practical advice for you in filing out the form that will maximize success in obtaining a successful IRS payment plan.
Second, it is a good idea to have an idea of what an acceptable IRS payment plan proposal is for your own planning purposes.

IRS Currently Non-Collectible Status

May 25, 2026October 3, 2013 by Brotman Law

Introduction to IRS Currently Non-Collectible Status

There are many ways to resolve a tax liability. You can set up a payment plan[1], attempt to settle a tax debt with an offer in compromise, or pay the balance that you owe in full. However, there are some instances where any amount of money would create an unfair economic hardship on the taxpayer. As a result, the IRS created a temporary hardship status known as IRS currently non-collectible status. This may be also referred to by the IRS or by tax practitioners as “CNC status” or 53ing an account (the code the IRS enters into the account to place it in it IRS currently non-collectible status. By placing an account in IRS currently non-collectible status, the IRS essentially halts all attempts at collection activity on an account until it feels that the taxpayer is ready to make payments again. IRS currently non-collectible status generally lasts anywhere from six months to over two years.

Key Takeaways

In order for the IRS to deem that a taxpayer account is non-collectible, the taxpayer must demonstrate a severe and apparent economic hardship.
In conclusion, IRS currently non-collectible status is not for everyone. However, if you do qualify, it can provide much needed temporary relief for your IRS collection issues.

Streamlined IRS Payment Plans

May 25, 2026October 3, 2013 by Brotman Law

Introduction to Streamlined IRS Payment Plans

One of the ways that you can resolve a liability is with an IRS payment plan. The IRS generally accepts payment plans when the taxpayer does not have sufficient assets available to pay their liability in full. Payment plans are seen as a method of compromise by the Service that the taxpayer to avoid any adverse collection activity (assuming they remain true to the conditions of the payment plan) while paying down their liability to the government. However, IRS payment plans can be difficult to negotiate, in part because the IRS usually requires a complicated financial statement on the part of the taxpayer. A little known trick to taxpayers though is that you are sometimes able to set up a payment plan and it is virtually guaranteed to be accepted without having to undergo much of the financial disclosures generally required by the IRS. These are known as streamlined IRS installment agreements or streamlined IRS payment plans.

Key Takeaways

One of the ways that you can resolve a liability is with an IRS payment plan. The IRS generally accepts payment plans when the taxpayer does not have sufficient assets available to pay their liability in full.
There are a few basic requirements to qualify for this type of tax relief. First, as is a requirement with any of the IRS payment plans, the taxpayer must be current on all tax filings and be up to date on all estimated tax payments over the course of the year.
In closing, if you meet the requirements for one of the streamlined IRS payment plans then they are a great way to alleviate your balance due without too much effort expended.

IRS Revenue Officers and Strategies for Dealing with Them – Part Five

May 25, 2026October 2, 2013 by Brotman Law

IRS Revenue Officers Tip # 6 – Knowing When to Get Tough

This is one of the most difficult things for me to advise you on how to do properly and effectively. Experience and knowledge of tax procedure have seasoned me throughout the years on when is an appropriate time to get tough with your revenue officer. The fact of the matter is that some revenue officers will try to take advantage of your weakened position and, if you let them, they will walk all over you. Some will go on a fishing expedition by requesting a ridiculous amount of documentation to substantiate the positions on your financial statement or for them to conduct their investigation. Some will take a hard line position by insisting on good faith payment amounts or monthly installment payment amounts that are too difficult for the taxpayer to meet without them suffering financial hardship.

Key Takeaways

This is one of the most difficult things for me to advise you on how to do properly and effectively. Experience and knowledge of tax procedure have seasoned me throughout the years on when is an appropriate time to get tough with your revenue officer.
As I mentioned, it is always better to be nice to the revenue officer and maintain an amicable relationship. However, sometimes this is not always possible and some people just need to be put into check.
In closing, I hope that these tips have been helpful for you in learning how I deal with revenue officers. My goal here was to assist you in achieving better results and to minimize the stress that an IRS collection matter can put on your life.

IRS Revenue Officers and Strategies for Dealing with Them – Part Four

May 25, 2026October 2, 2013 by Brotman Law

IRS Revenue Officers Tip #5 – Manage Your Expectations

One of my favorite IRS revenue officer sayings is that “the IRS is not a bank.” I find this slightly humorous in light of how many people have outstanding tax liabilities, but it also is a key takeaway about the mindset in which revenue officers approach their cases. IRS revenue officers are tasked with achieving the best possible resolution for the government, which means having the taxpayer satisfy their liability as soon as possible and/or squeezing as much money out of the taxpayer over the long run as they can without putting the taxpayer in financial hardship. Do not think for a second that they are going to sway from this purpose. In addition, revenue officers have a manager look over and approve all resolutions before they become final. If they slack in their job, they will hear about it from their managers.

Key Takeaways

One of my favorite IRS revenue officer sayings is that “the IRS is not a bank.
For example, one of the most important and difficult questions that I get from families with IRS problems is whether or not they are going to be able to keep their kids in their private schools or pay their college tuition on an IRS payment plan.
The main thing that I want to communicate to you is that you need to manage your expectations going into the process of what the end result is going to be.