The collection process can be stopped by resolving your liability. If you receive a notice from the Internal Revenue Service (IRS) regarding tax debt , consider this your call to action. It is common for taxpayers to ignore notices or think that it’s not a big deal. The problem with ignoring IRS notices is that not only does your tax liability continue to increase with penalties and interest; collection actions against you become more aggressive and happen sooner than many realize.
Taxpayers are often quick to ignore notices when they know they are unable to pay what they owe. The IRS has several options available for different financial situations. The fastest way to stop collection action is to pay the amount due in full. If you’re not able to pay it as a lump sum, all at once, you may qualify for a payment plan that will stop collection action.
An installment plan allows taxpayers to pay what they owe in monthly installments and there are different plans based on what you owe and your finances. After you apply and are approved for a plan, the collection action against you will end as long as you make payments as agreed.
If you are unable to pay anything toward the amount due, there are several options. You can apply to be declared uncollectible due to financial hardship or apply for an offer in compromise. Being declared uncollectible will temporarily suspend collection action until your situation improves and an offer in compromise allows you to make an offer on what you can pay; paying less than what is originally owed.