1. The IRS will continue to send you monthly statements and bills via regular mail, as well as any collection notices, such as “Intent to Levy” notices.
2. The IRS requires financial documentation to show your current financial situation for an Offer in Compromise, Installment Agreement and Currently Not Collectible. In the case of CNC, the IRS will periodically review your status to see if you still qualify for the CNC.
3. The IRS will continue collection/levy action unless a temporary “Stay of Collections” has been put in place or an Installment Agreement has been agreed upon. They will also place a lien on property in order to establish priority over creditors, judgment lien creditors and other lenders.
4. The IRS believes if you can pay all the little extras, such as cable TV, Internet, cell phones, etc., you can pay them.
5. The IRS will take all refunds until the liability of the client is zero.
6. The IRS will require all tax returns to be filed because you may owe even more money on the unfiled years. Or if you are due a refund, they will put that towards your liability.
7. The IRS will take into consideration any equity you have in real estate that you can borrow against and retirement accounts that you can either cash in or borrow against. They will expect you to use that money towards your liability.
8. The IRS will not, under normal circumstances, release levies without setting up an IA to at least pay them something on a monthly basis. Bank levies will not be released unless you can prove hardship with foreclosure or eviction notices, final disconnection notices on utilities, etc. As for businesses, a bank levy may be released if the business can prove the money in the bank account is for payroll purposes.
10. The IRS expects you to pay your debt in some way, shape or form.