3 Ways the IRS is NOT like other Creditors
Unlike a regular creditor, the IRS doesn’t have to sue you and get a judgement before they can begin collection action against you. They simply have to “assess” the tax against you. Basically this means they simply have to type it into their computer. That’s it. Then they begin sending you their series of nasty collection letters.
After you’ve received the last collection letter, you are now a collect target.
Some clients say they never received the IRS’ series of collection letters. Sometimes the IRS makes mistakes, but most of the time the reason a client didn’t receive the collection letters was because they moved and didn’t send a special address change form to the IRS. It isn’t enough that you gave the Postal Service a change of address, that merely forwards your mail for a period of time.
Even if you didn’t know the IRS had sent you the collection letters, the IRS can begin collecting against you. You may suddenly receive a bank levy or wage levy or something else, and it will be like a bolt of lightning out of the sky.
Also unlike a regular creditor, they don’t have to file their garnishment notices in the local courthouse. They merely have to mail them to the target.
The power to go after a taxpayer without the usual formalities that regular creditors must go through is because Congress gave them that power. Congress likes to spend money, so Congress wants to make it faster and easier for its collectors to start work on you.