Some stronger comments may come to mind when you or a client have to deal with the IRS when it is attempting to collect taxes. This Newsletter begins a series of articles dealing with the subject of IRS collection practices, a subject that for many is best left unmentioned. However unglamorous the subject may seem, in fact, IRS collection practices can have an enormous impact on both clients and tax professionals.
Many tax professionals refuse to deal with collection cases for a variety of reasons.
The undoubted importance of collection matters, to both tax professionals and taxpayers stems from the considerable power that the IRS has when acting in its collection capacity. For tax professionals, the task of dealing with IRS collection activities is often very different from dealing with the Service in its more familiar role of tax auditor. While it is often true that individuals and businesses who fail to file returns or pay taxes are foolishly courting disaster, there are exceptions. For example, sometimes an errant employee or spouse may cause a return not to be filed or a tax to go unpaid. In other words, not all collection cases are the product of an apparent desire of a taxpayer to commit financial suicide.