Top IRS Questions Answered

Dealing with the IRS can feel overwhelming, especially when notices pile up, or you're facing tax debt. If you're unsure whether to negotiate on your own, can’t reach your revenue officer, or are considering bankruptcy, you’re not alone.

Here are the answers to some of the most common IRS questions we hear from clients.

1. Should I negotiate with the IRS on my own?

While the IRS allows individuals to represent themselves, it’s important to understand that the system is complex. A small mistake could cost you thousands — or the chance to settle on more favorable terms.

Tax professionals like CPAs, enrolled agents, or tax attorneys know how to navigate IRS procedures and can often negotiate better terms than individuals acting alone.

Take Action:

Before contacting the IRS, speak with a licensed tax professional, preferably one well versed in IRS Dispute, Resolution, and Collections. They can help you explore options such as Offers in Compromise, installment agreements, or temporary hardship status.

2. Why can’t I get ahold of my revenue officer?

IRS revenue officers often work independently and handle numerous cases at once. Limited resources and field duties mean returned calls can be delayed—or missed entirely.

Take Action:

Maintain a paper trail. If calls aren’t returned, send a certified letter to their local IRS office. Consider having a tax professional reach out on your behalf for a more effective line of communication.

3. Can I File Bankruptcy to eliminate my tax debt?

Income tax debts can sometimes be discharged through bankruptcy, but only if they meet the following criteria:

• The tax return was due at least three years ago
• You filed the return at least two years ago
• The tax was assessed at least 240 days ago

Certain types of debt—like payroll taxes or penalties for fraud—are not dischargeable.

Take Action:

Often installment agreements or Offers in Compromise can provide significant relief in place of filing bankruptcy. But each of these types of agreements needs to be done correctly and with the help of a trusted IRS dispute and collections trained professional.

4. Why is it important to read IRS notices?

Every IRS notice outlines specific issues, required actions, and strict deadlines. Ignoring a notice could escalate your case or lead to more aggressive enforcement, including levies or liens.

The IRS is legally required to notify you before taking major actions. These notices are your window to respond or appeal.

Take Action:

Open every IRS letter promptly. If you're unsure what it means, seek help immediately. A tax professional can interpret the notice and help you respond strategically.

5. Why did the IRS file a tax lien against me?

A tax lien is the government’s legal claim against your property. It impacts your credit, your ability to sell or refinance property, and could create long-term financial strain. A lien doesn’t mean the IRS has taken your property—but it does give them legal rights to it.

Take Action:

Explore whether you qualify for a lien withdrawal, subordination, or discharge. Taking immediate action improves your chances of resolving the lien before it creates more complications.

6. The IRS froze my bank account — what do I do?

When the IRS levies your bank account, they don’t take your funds immediately. Instead, the bank holds the money for 21 days from the date they receive the levy notice, giving you a chance to resolve the issue.

The IRS uses a tax levy to start collection proceedings on the taxes they believe are owed. A levy allows the IRS to legally seize assets to satisfy a liability.

Take Action:

• Immediately contact the IRS or your revenue officer
• Provide financial documentation that may support release of the levy
• Work with a tax professional to negotiate a release, if possible
• Time is critical — after 21 days, the funds are transferred to the IRS

Don’t Wait for the IRS to Make the Next Move

Procrastinating with the IRS rarely works out in your favor. The best step you can take is to be informed — and proactive.

With the right guidance, what seems overwhelming can become a manageable and even resolvable issue.

Need help navigating IRS issues?

If you're unsure what to do next, our team of experienced IRS Dispute Resolution and Collections professionals can help. Get the knowledge and experience you need on your side.