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

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.

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

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

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

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.

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

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.

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

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.

(CTRS) Certified Tax Resolution Specialist Practice Test

(CTRS) Certified Tax Resolution Specialist Practice Test

CTRS CTRS IRS Collections and Enforcement