Video: How the IRS Collects Back Taxes

How the IRS Collects Back Taxes

I posted a video on my youtube channel about the IRS collection process. If you owe back taxes, you need to understand how the IRS goes about collecting it from taxpayers. As the old G.I. Joe cartoon said, “Knowing is half the battle.”

Listed below is the steps the IRS takes in collecting back taxes. I go into much greater detail in the video, so these are my crib notes:

The IRS Collection Process

  • A tax return is filed or the IRS prepares one for the taxpayer
  • The IRS records an assessment in its records
  • If taxes are due but unpaid, IRS mails out a notice and demand for payment
  • If the taxes remain unpaid after notice and demand, a statutory lien arises
  • If taxes exceed $10,000, the IRS files a notice of federal tax lien (NFTL)
  • IRS issues a series of notices requesting payment until the final notice of intent to levy
  • The final notice starts a 30-day period to pay or file a collection appeal
  • When the 30-day period passes, the IRS can seize taxpayers assets

Without further ado, here is my video blog post.

My firm helps Maine taxpayers in trouble. If you or someone you know in the Portland, Maine area has received an IRS collection notice, please feel free to contact me directly at 207-299-0515 or by filling out my contact form.


James D. Wade, Esq.

Law Office of James D. Wade

53 Exchange St., Ste 400

Portland, ME 04101