When the Tax Collector Comes Knocking: IRS Tax Collection

In 2025, navigating the IRS's tax collection process is more critical than ever, as changing tax laws and economic shifts demand vigilance from both individuals and businesses. The IRS, armed with a formidable team of Revenue and Appeals Officers, is tasked with collecting taxes through various methods, from returns to levies. Once a tax liability is assessed—whether due to incomplete payments, substitute returns, or unchallenged Notices of Deficiency—IRS officers spring into action, aiming to collect the owed amounts while adhering to taxpayer protections under the Internal Revenue Code. Ignoring IRS notices can escalate to severe actions like liens, levies, or even jeopardy assessments, where assets can be seized without warning. By staying informed and proactive, taxpayers can effectively manage their obligations, avoid penalties, and maintain financial stability amidst the IRS's rigorous collection efforts.

Read now »

Related Content

• Statutes of Limitations for Tax Returns and Controversies (Substantial Omissions, Collections, and Certain Governmental Actions)
  Recognize how a general three-year period exists for assessing deficiencies and a 10-year period for collecting unpaid taxes, each subject to exceptions. Special periods may apply where the taxpayer has omitted a substantial amount of income from their tax return(s), for lawsuits brought by the IRS, where fraud occurs, and in other circumstances.

• Tax Collection and Enforcement: IRS Third-Party Contacts
  See how the IRS has the authority to contact any person other than the taxpayer (i.e., a third party) regarding a taxpayer's tax liability. The IRS may contact a third party  to obtain information if the taxpayer is unable or unwilling to provide the necessary information or when the IRS needs to verify information provided by the taxpayer.

Practical Guidance Updates 
Featuring the latest updates from your Practical Guidance account.    

• Tax Key Legal Developments Tracker (Federal) (Current)—keep up to date with key legal developments!
  • Business Entities. IRS provides various prescribed rates for federal income tax purposes for March 2025 (the current month).  Rul. 2025-6.
  • Individual Income Taxation. IRS adjusts the housing expense limitation, under section 911, for specific locations for 2025. Under the general limitation, a qualified individual whose entire tax year is within the applicable period is limited to a maximum housing expense exclusion of $39,000 ($130,000 x .30) for 2025, to the extent expenses exceed a base amount of $20,800. Notice 2025-16.
  • Tax Practice, Procedure, and Controversy. IRS publishes rates of interest for tax underpayments and overpayments for the calendar quarter beginning April 1, 2025. The rates of interest will remain the same for the second calendar quarter of 2025. Rul. 2025-7.
  • International Taxation. President Trump issues a memorandum providing that the OECD Global Tax Deal no longer applies in the United States, with a stated goal of safeguarding sovereignty and competitiveness while combating extraterritorial, discriminatory taxes impacting U.S. businesses. The Organization for Economic Co-operation and Development (OECD) Global Tax Deal (Global Tax Deal); 90 Fed. Reg. 8483 (Jan. 30, 2025).
• Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.
• New! Discover Practical Guidance Content and Resources
• Read this update to see the newest additions to Practical Guidance. This guide is designed to help you find the tools and insights you need to work more efficiently and effectively.
• Review the Chevron Reversal Impact Resource Kit for analysis related to the Supreme Court’s decision to overturn four decades of deference to federal agency interpretations of ambiguous statutes.
• Keep current on Trump administration developments by referencing the Presidential Executive Actions Tracker, Legal Challenges to 2025 Presidential Executive Orders and Actions Tracker, and Trump Transition Resource Kit.
• The Practical Guidance Journal 2025 Edition One features guidance on what attorneys need to know about deepfake technology, a look ahead at AI risk management, an artificial intelligence checklist, and a review of cautions and key AI legal issues in DEI and employment discrimination.
• Browse the Practical Guidance Author Center to see the 2000+ leading attorney authors contributing to our 26 practice areas. Interested in becoming a Practical Guidance author? Click here for details. Practical Guidance is committed to amplifying diverse voices of attorneys across all differences, including gender and race.   
• Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content. 

• New and Recently Updated Practical Guidance Content
  • Final Regulations on Micro-Captive Listed Transactions and Micro-Captive Transactions of Interest
  • A Primer on Tariffs
  • Expatriation Tax: The Tax Consequences of Renouncing U.S. Citizenship
  • Tax Implications of Name, Image, and Likeness (NIL) Rights and Collectives
  • Partnership Taxation: Current (Non-liquidating) Distributions
  • Partnership Agreements and Allocations under Code Section 704(b)
  • Top Federal Tax Cases to Watch in 2025
  • House Passes Budget Blueprint Allowing $4.5T In Tax Cuts
  • Trump Delays Mexico, Canada Tariffs on Autos For A Month

PRACTICAL GUIDANCE CUSTOMER EMAIL EDITION ON THE WEB

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+

Review these newsletters to preview Practical Guidance coverage of recent legal developments in your practice area.

Practical Guidance customers who are logged in will be directed to the full linked content.

Not yet a Practical Guidance Subscriber? Sign up for a FREE seven-day trial here to access summaries of the linked content and gain access to full coverage during your trial.