CTRS CTRS IRS Collections and Enforcement 3

Question 1

What is the difference between a tax lien and a tax levy?

Accepted Answer

A lien is a legal claim against property; a levy is the actual seizure of property to satisfy the debt

Answer

A federal tax lien is a legal claim that secures the government's interest in a taxpayer's property, while a levy is the actual taking of property to satisfy the tax debt.

Question 2

What is the IRS's 'Compliance Roadmap' in the context of collection enforcement?

Accepted Answer

A visual guide showing the sequence of IRS notices and collection actions from assessment to levy

Answer

The IRS Compliance Roadmap is a publicly available visual guide that shows taxpayers the sequence of notices and actions the IRS takes from assessment through levy and beyond.

Question 3

Under what circumstances may the IRS disclose tax information to state agencies?

Accepted Answer

Under IRC §6103 exceptions that permit disclosure to state tax agencies for tax administration purposes

Answer

IRC §6103 generally protects the confidentiality of tax returns but contains specific exceptions allowing disclosure to state tax agencies for tax administration purposes.

Question 4

What happens to a federal tax lien when the CSED expires?

Accepted Answer

The lien becomes legally unenforceable and the IRS must release it upon request

Answer

When the 10-year CSED expires, the federal tax lien is extinguished because the underlying liability can no longer be legally collected.

Question 5

Which IRS publication provides the most comprehensive overview of the IRS collection process for practitioners?

Accepted Answer

IRS Publication 594 (The IRS Collection Process)

Answer

IRS Publication 594 is the primary publication explaining the IRS collection process, including notices, liens, levies, and payment options.

(CTRS) Certified Tax Resolution Specialist Practice Test

(CTRS) Certified Tax Resolution Specialist Practice Test

CTRS CTRS IRS Collections and Enforcement 3