We have an interesting case example of a client who owes taxes for tax year 2009.
He knew he was going to owe when he called me in April of this year - before he filed.
He filed on time - April 15th 2010.
He has received three cycles of letters to collect the $31,000 that he owes. The final letter of the cycle came on September 20, 2010: "FINAL NOTICE OF INTENT TO LEVY AND NOTICE OF YOUR RIGHT TO A HEARING."
Our understanding is if the taxpayer ignored this letter he would be levied around the end of October. A levy means a garnishment on his wages or a cleaning out of his bank account.
So, the essence of this post is that it takes the IRS about SIX MONTHS exactly to aggressively collect a new tax debt after it is filed.
