Federal Tax Collection Procedure — Defensive Measures (Portfolio 638)

Description

Bloomberg Tax Portfolio, Federal Tax Collection Procedure — Defensive Measures, No. 638, analyzes in-depth the procedures available to defend against IRS collection actions. Beginning with assessment of tax, notice and demand, and nonpayment by a taxpayer, the federal tax lien arises and attaches to all of the taxpayer’s property and rights to property. In addition to the federal tax lien, there are other administrative collection devices that the IRS uses to enforce collection of unpaid tax liabilities. These include the federal tax levy and seizure and sale of a taxpayer’s property. The IRS also may enforce collection of tax liabilities by instituting judicial proceedings. A further discussion of all of the administrative and judicial collection procedures available to the IRS is contained in 637 T.M., Federal Tax Collection Procedure — Liens, Levies, Suits and Third Party Liability.

Taxpayers are not without defenses to enforced tax collection by the IRS. Taxpayers (and, in some situations, other third parties) have a variety of administrative and judicial procedures available to postpone or curtail collection activity by the IRS. These procedures include appeals, installment agreements, offers in compromise and bankruptcy. These procedures are discussed at length in this Portfolio.

Table of Contents

I. Introduction
II. Assessment, Statute of Limitations and Payment Issues
III. Administrative Appeals
IV. Injunctive Relief
V. Determining Whether Fair Tax Collection Practices Were Followed
VI. Installment Agreements
VII. Extensions
VIII. Offers in Compromise
IX. Bankruptcy
X. Miscellaneous Collection Issues