This is the tenth post in the Collection Options series. This series is dedicated to presenting individuals and businesses with options for dealing with outstanding tax obligations.
Taking No Action. Some taxpayers have the option of taking no action to resolve their outstanding tax obligations with the Internal Revenue Service. The IRS has ten years from the date of assessment to collect taxes subject to certain exceptions that can extend this ten years. The taxpayer may voluntarily pay these taxes, or the Internal Revenue Service may collect them through enforced collection procedures. Typical enforcement actions by the Internal Revenue Service are to levy wages and bank accounts. As a last resort, if a taxpayer will not be cooperative, the Internal Revenue Service will seize and sell the taxpayer’s residence. For those taxpayers who have no bank accounts, are self employed and therefore do not receive a weekly or monthly paycheck from a consistent source, and who do not have equity in real estate or other leviable assets, simply taking no action and waiting for the ten year Statute of Limitations to run may be a viable option. Be careful and alert to any notice you receive.