CTRS IRS Collections and Enforcement Flashcards

What is the primary IRS unit responsible for collecting delinquent tax debts from individuals and businesses?

Answer: Automated Collection System (ACS)

The Automated Collection System (ACS) is the IRS's centralized phone-based unit that handles delinquent accounts before they are assigned to a Revenue Officer.

A Revenue Officer is assigned to a delinquent taxpayer's case. What does this generally indicate?

Answer: The case has escalated beyond ACS and requires in-person field collection

Assignment to a Revenue Officer typically means the case has escalated to field collection because ACS was unable to resolve it remotely.

What is the standard federal tax lien priority rule under IRC Section 6323?

Answer: A federal tax lien is valid against third parties only after a Notice of Federal Tax Lien is filed

Under IRC §6323, a federal tax lien is not valid against purchasers, holders of security interests, mechanic's lienors, or judgment lien creditors until a Notice of Federal Tax Lien (NFTL) has been properly filed.

How long does the IRS generally have to collect assessed taxes under the Collection Statute Expiration Date (CSED)?

Answer: 10 years from the date of assessment

Under IRC §6502, the IRS has 10 years from the date of assessment to collect a tax liability, after which the debt is legally uncollectible.

Which IRS action requires the taxpayer to be notified at least 30 days before the IRS can seize property?

Answer: Final Notice of Intent to Levy

The IRS must issue a Final Notice of Intent to Levy (Letter 1058 or LT11) and allow at least 30 days before seizing a taxpayer's property.

What type of IRS levy directly intercepts a taxpayer's wages before they are paid?

Answer: Continuous wage levy

A continuous wage levy attaches to future wages and remains in effect until released, unlike a bank levy which is a one-time seizure of funds on deposit.