tax collections

If you have outstanding tax debts your account is typically sent to the IRS Automated Collection System (ACS). The ACS is a system used to manage the collection of outstanding IRS tax debts from individual taxpayers and businesses. If you have received a notice from IRS ACS and are unsure what to expect, here’s everything you need to know.

IRS Letter 9297 (Summary of Taxpayer Contact) indicates that an Internal Revenue Service (IRS) revenue officer is working on your account, and the agency needs your financial information. The IRS typically assigns accounts to revenue officers when taxpayers have compliance issues, a substantial back tax balance, or the agency's automated approach has failed to collect payment.

The IRS has 10 years to collect unpaid taxes, which is called the Collection Statute Expiration Date (CSED). The CSED is triggered when the IRS assesses taxes or a tax return is filed. Certain events, like filing for bankruptcy or applying for an Offer in Compromise (OIC), can toll the CSED, pausing the IRS’s collection efforts and extending the collection timeframe.

After state taxes have been assessed, the Department of Taxation and Finance (DTF) can only collect taxes for a set period of time. In New York State, the statute of limitations is generally 20 years. However, there are exceptions, and the starting point for the 20 years depends on the specific details of your tax situation.

Making the decision to shutter your company can be stressful, but it also means having to manage existing tax debt. It’s a misconception that closing your doors gets you off the hook. If you owe federal or New York State taxes, the business is financially responsible for paying them, and in some cases, you may be personally liable for unpaid business taxes.

In New York, the Department of Taxation and Finance (DTF) has the right to hold individuals responsible for unpaid sales or withholding taxes. The state is willing to go after individuals who have the authority and responsibility to track, calculate, withhold, deposit, or otherwise remit the business's sales or payroll taxes to the NYS DTF.

A Revenue Officer assignment means the IRS has escalated your case and placed it in the hands of a field agent whose job is to secure compliance and collect what the government believes it is owed. The Revenue Officer is personally focused on collecting your business's back taxes.