The IRS collection process begins when IRS does not receive full and timely payments from a taxpayer after it issues a collection notice. Based on the information in the taxpayer’s 1040 tax return, if the taxpayer does not pay the first notice, IRS sends a second notice, plus additional interest and penalties as they continue to accrue. The collection process begins when this second – or final collection notice – is not paid.

The IRS Collection process and its actions are summarized in 4 possible scenarios...