Market Statistics

  • 3.89 million penalties canceled
  • $3.62 billion saved by tax payers
  • 60 cents to the dollar is cancelled on properly challenged IRS employment taxes
  • 20% raise in delinquent tax payer debt
  • 26% increase in IRS enforcement action
  • 20,000 compromises have been accepted
  • 534,392 liens
  • 2.5 million levies
  • 14.8 cents on the dollar on debt forgiveness debts
  • 58% tax audit bill reduction
  • $200 billion taxes owed but not collected by the IRS
  • $200 billion estimated taxes owed on unreported/unfiled returns
  • 2.6 million tax payers are on installment plans (successfully avoiding wage and bank levies and property seizures.)
  • 15% of Americans owe back taxes
  • Tax Collection Timeline

A TDA (Taxpayer Delinquent Account) is the IRS designation for taxes assessed and not paid. A TDA can be in any one of the six steps in the IRS tax collection cycle.

  • Pre-Assessment-determination of tax liability before it is assessed (Offer in Compromise, Installment Agreement, and CNC status designation can be pursued)
  • IRS Service Center-a statutory notice and demand is computer generated and is sent to the taxpayer, Intent to Levy notice is sent last
  • Automated Collection System (ACS)- delinquent taxpayer's financial profile, including income, expenses, and assets are located by ACS collection agents, may take up to 12 months, (Installment Agreement or CNC status can be negotiated)
  • Queue-Accounts sit in the queue based on probability of collection and collectability if not routed to Field Collectors
  • Collection Field-field officers will actively attempt to contact and collect from delinquent taxpayers
  • Special Procedures-bankruptcy, foreclosure, litigation, lien releases and other non-traditional efforts require specialized care.

Common Issues/FAQs Related to Tax Debt
Tax Debt FAQs
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Offer in Compromise

An offer in compromise can be the best solution for ridding yourself of tax debt to the IRS. In this offer, your debt is cut substantially on the assumption that you will be able to pay off the smaller amount, and the guarantee that you will pay your taxes for the next five years. This is a formal contract between you and the IRS. Therefore, it needs to be negotiated carefully by a tax specialist, who you can find on

Tax Penalty Abatement

Tax penalties normally are added onto taxes you owe to the IRS, as this is an automated process performed by a computer. Sometimes, these penalties can be inaccurate or completely unwarranted. Working with a tax specialist can help you fight and dismiss such penalties, as trying to do it yourself can be very difficult.

Wage Garnishment Release

When taxes owed to the IRS go uncollected for a long enough period of time, liens or wage garnishments can soon follow. Such actions can stretch your budget to the point where you can no longer support yourself or your family. The tax specialists here at can help you negotiate a wage levy release, and can potentially freeze all future collection activities by the IRS.

IRS Payment Plans

Regardless of tax type (payroll, employment, income, etc.), IRS payment plans can be a great solution to dealing with the burden of a large tax debt. IRS payment plans are interest-free and can be negotiated by a tax specialist/professional. This can be an excellent alternative for someone who does not, or cannot, organize an offer in compromise.