CTRS CTRS IRS Collections and Enforcement

Question 1

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

Accepted Answer

Automated Collection System (ACS)

Answer

Office of Appeals

Answer

Criminal Investigation Division

Answer

Taxpayer Advocate Service

Question 2

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

Accepted Answer

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

Answer

The taxpayer has filed for bankruptcy

Answer

The IRS is waiving the debt

Answer

The taxpayer qualifies for Currently Not Collectible status

Question 3

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

Accepted Answer

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

Answer

A federal tax lien automatically takes priority over all other creditors upon assessment

Answer

A federal tax lien is junior to all state tax liens

Answer

A federal tax lien requires court approval before it becomes effective

Question 4

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

Accepted Answer

10 years from the date of assessment

Answer

3 years from the date of filing

Answer

7 years from the date of assessment

Answer

Indefinitely until collected

Question 5

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

Accepted Answer

Final Notice of Intent to Levy

Answer

Notice of Federal Tax Lien filing

Answer

Substitute for Return preparation

Answer

Trust Fund Recovery Penalty assessment

Question 6

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

Accepted Answer

Continuous wage levy

Answer

Bank levy

Answer

Seizure levy

Answer

State refund levy