The U.S. Internal Revenue Service is the single largest collections agency in the world. According to the most recent statistics available, in 2013 the IRS spent $11.6 billion and employed just under 87,000 to collect more than $2.8 trillion in tax revenue. Of those 87,000 personnel, over 19,000 are directly involved in enforced collections against taxpayers that owe back taxes.
While the IRS is one bill collector that can have a serious impact on your life, it’s important to understand just how they work. So the first thing to realize is that the IRS is a slow moving bureaucracy. It is highly driven by forms, written procedures and is resistant to change. Their playbook is public record and they are required to follow it. While this may not bode well for you resolving your tax matters expeditiously, it does give you some comfort in that you can figure out what is coming next. Below we break the IRS collections process down into the 1040 notice sequence and the colle