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When the IRS is serious about collecting

February 24, 2009

Peter Pappas has posted a good overview of the IRS collection process. He talks about when you need to get help:

The simple truth is that the vast majority of taxpayers don’t possess the knowledge of the tax laws and the experience in dealing with a vast and powerful government bureaucracy necessary to competently represent themselves.
If you owe less than $10,000 to the IRS it might not (for cost-benefit reasons) make sense for you to hire a tax lawyer or CPA.

But if you owe more than that, we recommend that you at least have a consultation with an experienced tax professional before you make a mistake that could cost you money or, even worse, your freedom.

He also has good insights on the frustrations of dealing with the IRS telephone collection staff. Though the Treasury employee union would have you believe otherwise, official IRS personnel can drive you at least as crazy as a private agency.

Tags: Peter Pappas.