IRS Collections and Installment Arrangements (Course Id 2058)

Although, as reported in the National Taxpayer Advocate blog, the IRS suspended the automatic mailing of collection notices routinely sent when a taxpayer owes federal tax on February 5, 2022 to give the IRS an opportunity to clear its processing backlogs, such automatic mailings are likely to recur and, meanwhile, other IRS delinquent collection activities continue unabated. Statistics for fiscal year 2023, show the IRS ending inventory with a balance of assessed tax, penalties and interest exceeding $158.5 trillion, enforcement activity involving more than 466,000 taxpayers, and 4.04 million taxpayers paying tax liabilities under installment agreements.

With IRS collection clearly continuing and likely to ramp up in the future, chances that any tax professional will need to be conversant with their collection activities and the methods available to challenge them is increasing. It is to that end this course addressing IRS collections is addressed. 

Course Learning Objectives

• Identify the rights specified in the Taxpayer Bill of Rights;
• Describe the maximum period of time the IRS may collect taxes due from a taxpayer;
• List the tax payment alternatives available to a taxpayer;
• Recognize the IRS decisions that may be challenged by a taxpayer; and
• Compare the Collection Due Process and Collection Appeals Program.

Chapter 1
IRS Collections & Taxpayer Rights

• List the rights granted taxpayers in the Taxpayer Bill of Rights;
• Identify the maximum period of time in which the IRS may collect taxes due from a taxpayer;
• Describe the IRS tax collection process;
• Recognize the tax payment alternatives available to a taxpayer; and
• Describe a taxpayer’s right to challenge an IRS decision.

Chapter 2
Challenging an IRS Decision

• Identify the types of IRS decisions taxpayers may challenge in Collection Due Process (CDP) and Collection Appeals Program (CAP) hearings;
• Describe the period of time taxpayers have to request a CDP or CAP hearing;
• Recognize the notification requirements the IRS must meet before seizing taxpayer property to satisfy a tax liability;
• List the venues in which an Office of Appeals hearing may take place; and
• Describe the objectives of Fast Track Mediation.