What Are Taxpayer Rights During IRS Collections?
When the IRS moves to collect an unpaid tax debt, it must follow defined legal and administrative steps designed to protect taxpayers. These protections—summarized in the Taxpayer Bill of Rights and implemented through IRS collection procedures—include required notices, opportunities to challenge actions, access to payment options, and the right to professional, non-abusive treatment (IRS.gov). Understanding what the IRS must do and how to respond can prevent unnecessary financial harm.
Author credentials
I am a CPA and CFP® with 15+ years helping individuals and small businesses resolve tax collection issues. In my practice, timely use of collection rights—especially requesting a Collection Due Process hearing and negotiating installment agreements—has stopped levies and produced sustainable payment plans for clients.
Background and legal foundation
The Taxpayer Bill of Rights was adopted by the IRS in 2014 to consolidate and clarify taxpayer protections. It lists several core entitlements—like the Right to Be Informed, the Right to Challenge the IRS’s Position and Be Heard, and the Right to Finality—that govern interactions with the IRS, including collections (IRS, Taxpayer Bill of Rights). The statutory and administrative rules behind collections include the Internal Revenue Code, Treasury regulations, and IRS procedural manuals; important practical protections are explained on the IRS website and by the Taxpayer Advocate Service (TAS).
The key rights that affect collections (at a glance)
- Right to Be Informed: The IRS must tell you what you owe, why, and what you can do to resolve it. (IRS.gov)
- Right to Quality Service and Professional Treatment: IRS employees should treat taxpayers courteously and respectfully.
- Right to Challenge and Appeal: You may request administrative appeals or a Collection Due Process (CDP) hearing before a levy is made. CDP requests generally must be filed within 30 days of the notice. (IRS, Collection Due Process)
- Right to Finality: The IRS must inform you when a tax period is no longer under collection action.
- Rights to Privacy and Confidentiality: Your taxpayer information is protected by law.
- Right to Representation: You may appoint an authorized representative (power of attorney) to handle collection matters.
(For the official list, see the IRS Taxpayer Bill of Rights and collection pages at IRS.gov.)
What the IRS must do before taking collection actions
- Send written notices. The IRS typically mails a series of notices and letters explaining the liability and the consequences of not resolving it. These notices form the legal basis for further actions.
- Provide notice of intent to levy and an opportunity for an appeal. Before levying, the IRS must generally send a Notice of Intent to Levy and explain your right to a hearing (Collection Due Process). If you timely request CDP, the IRS cannot levy while the appeal is pending. (IRS, Collection Due Process)
- Follow rules on liens. The IRS must file a Notice of Federal Tax Lien in many cases; you have rights to appeal or request withdrawal under certain circumstances.
- Allow payment alternatives. The IRS must process requests for installment agreements, offers in compromise (OIC), currently not collectible status, or other relief when eligibility exists.
Practical steps to take when you receive a collection notice
- Read the notice carefully and note the deadline. Different notices have different response windows; many appeal opportunities must be invoked within 30 days.
- Don’t ignore the notice. Silence usually accelerates collection actions such as liens, levies, or wage garnishments.
- Confirm the debt amount. Mistakes happen. Ask for verification in writing if you believe the amount or identity is wrong.
- Request a Collection Due Process (CDP) hearing if you receive a levy notice and want a formal appeal of the proposed levy or lien.
- Consider immediate alternatives: file for an installment agreement, request Currently Not Collectible status, or prepare an Offer in Compromise if you meet the criteria. For guidance on offers, see our Preparing an Offer in Compromise: Documentation Checklist. For help with installment agreements, see How to Negotiate an Installment Agreement Online with the IRS.
What to include in your response and records to keep
- A copy of every IRS notice and any correspondence.
- Bank statements, paystubs, bills, and a current budget if you’re claiming inability to pay.
- A completed IRS Form 433‑A or 433‑F (financial statement) for individuals when applying for relief.
- A signed power of attorney (Form 2848) if an advisor will represent you.
Keeping organized records speeds negotiations and appeals and improves outcomes.
Real-world examples (anonymized)
- Wage levy stopped by timely CDP request: A self-employed client received a levy notice after missing estimated payments. We filed a CDP request within the notice window and negotiated an installment agreement that prevented wage garnishment and reduced stress while payment terms were set.
- Offer in Compromise accepted after documenting hardship: A household with high medical debt prepared a thorough financial package and documentation; their OIC was accepted based on reasonable collection potential and inability to pay. (See our Preparing an Offer in Compromise: Documentation Checklist.)
Who is affected and special situations
All U.S. taxpayers with outstanding federal tax liabilities are covered by these rights. Special circumstances include:
- Economic hardship: Taxpayers can request Currently Not Collectible status or a Partial‑Payment Installment Agreement.
- Collection on businesses: Business owners must also be given notice and appeal rights; payroll taxes and trust fund penalties have specific collection rules.
- Bankruptcy: Filing for bankruptcy affects IRS collection activity; speak with a bankruptcy attorney and tax advisor.
Common mistakes taxpayers make
- Ignoring a notice and assuming nothing will happen.
- Missing appeal deadlines—many protections (like CDP) are time‑limited.
- Failing to document financial hardship when requesting relief.
- Relying on unverified third‑party promises or paid services that guarantee results.
Practical strategies and professional tips
- Act quickly: calendar the exact date on the IRS notice and plan deadlines into your response timeline.
- Use the CDP process when appropriate: it pauses levies while the appeal is considered.
- If your situation is straightforward and the balance is small, use the IRS online tools for streamlined installment agreements.
- If your finances are complex or you face serious enforcement (levy or seizure), consult a CPA or tax attorney.
- Keep communication in writing where possible and retain proof of mailed documents.
How to complain about IRS conduct
If you believe an IRS employee has acted improperly or you received poor service, you may contact the Taxpayer Advocate Service (TAS) for help and can file a complaint through the TAS or directly with the IRS. TAS can be particularly helpful if you face immediate financial harm or systemic problems. (Taxpayer Advocate Service)
Frequently asked questions
- Can the IRS seize property without warning? No. The IRS must send written notices and provide a chance to appeal before making a seizure in most circumstances.
- What if I can’t pay the full amount? You can request an installment agreement, apply for an Offer in Compromise, or request Currently Not Collectible status depending on your facts.
- How long do I have to appeal a levy? Appeal windows vary by notice; CDP requests are generally due within 30 days of the levy notice—act immediately.
Useful internal resources
- Preparing an Offer in Compromise: Documentation Checklist: https://finhelp.io/glossary/preparing-an-offer-in-compromise-documentation-checklist/
- How to Negotiate an Installment Agreement Online with the IRS: https://finhelp.io/glossary/how-to-negotiate-an-installment-agreement-online-with-the-irs/
- How to Stop a Federal Tax Levy: Emergency Steps to Protect Accounts: https://finhelp.io/glossary/how-to-stop-a-federal-tax-levy-emergency-steps-to-protect-accounts/
Professional disclaimer
This article is informational and does not constitute legal or tax advice. Tax situations are individualized; consult a qualified tax professional (CPA, enrolled agent, or tax attorney) before relying on the information for decisions about IRS collections.
Authoritative sources and further reading
- IRS, Taxpayer Bill of Rights: https://www.irs.gov/about-irs/taxpayer-bill-of-rights
- IRS, Understanding Your Rights: https://www.irs.gov/individuals/taxpayer-rights
- IRS, Collection Due Process (CDP): https://www.irs.gov/appeals/collection-due-process-cdp
- National Taxpayer Advocate (Taxpayer Advocate Service): https://taxpayeradvocate.irs.gov/
- IRS, The Collection Process (Publication 594): https://www.irs.gov/publications/p594
If you face active collection action, respond quickly, document your finances, and get professional help when needed to preserve your rights and minimize financial disruption.
