The IRS has long been known for significant backlogs and long wait times. The agency collected around $4.7 trillion in 2023, showing just how much money and information the IRS manages each year. 

Because of all the taxpayer information the agency processes, all the many different situations the government must monitor, and the increasing amount of back taxes owed by taxpayers, the IRS created the Automated Collection System (ACS) in the 1980s to help speed up processing. The IRS ACS automates certain tasks that don’t require immediate agent intervention, such as sending out notices of unpaid taxes due. 

Find out the purpose of the ACS, how it works, and what you need to know when dealing with the automated system. 

What Is the ACS?

The ACS is an automated system that issues IRS notices to taxpayers and may perform other collection actions. These notices typically request payment, and accounts are likely assigned to the ACS if taxpayers owe $100,000 or less in taxes. When an account is delinquent with the IRS, tax collections are either sent to a revenue officer to handle or through the ACS system. If collections don’t happen from the ACS action, the case will likely be sent over to an IRS revenue officer.

There is no one IRS agent assigned to accounts that are being handled by the ACS, but the IRS has ACS-specific agents you’ll speak to if you call the agency with questions. These agents are trained to answer any questions you have about your notice or your tax balance so you can get the bill paid off and the matter resolved.

Your account will typically be assigned to the ACS if you fail to pay your tax debt within a few months of filing your return. If you continue to fail to pay, the IRS will send additional notices regarding levies. Eventually, the agency may assign the case to a revenue officer or send the case to an outside collection agency for further action.

Actions the IRS ACS Can Take

There are certain IRS collection actions the ACS won’t do, particularly if a case or account is being managed by a revenue officer. However, these are common actions the ACS can take:

• Sending notices that demand payment of the taxes owed
• Sending levy notices
• Seizing certain assets, such as your wages or bank account
• Initiating collection activities based on a set of automated triggers

Note that the ACS cannot seize assets like your physical property, and the technology won’t file a lawsuit against you. These additional actions may be taken by a revenue officer if the issue advances that far.

Remember that the ACS takes actions automatically. You may be angry or stressed when you receive a notice, but that notice may have been generated because you met the requirements for a certain trigger. 

If you can, comply with all instructions and payment amounts on your IRS ACS notice. If you have questions, wish to dispute, or cannot pay, your next step may be contacting the ACS to talk to a real person about your situation and negotiations to move forward. 

What Is Form 9297?

One form to know related to tax collections is Form 9297, Summary of Taxpayer Contact. The IRS may send you this notice to collect your information, including details about your financial situation. The IRS will use these details to determine if you can afford to pay your unpaid tax balance.

It’s important to recognize that the ACS does not usually send out these forms. If you receive Form 9297, this means the IRS has pushed your case beyond the ACS and a specific revenue officer or office is looking deeper into your case.

Always respond promptly when you receive Form 9297. Provide all requested information, and ensure everything is accurate and up-to-date. Read all instructions on the notice carefully, and talk to a tax professional if you’re not sure what to do.

Tips for Contacting IRS ACS Support

One thing many taxpayers may worry about is dealing with the ACS when they have a question or issue. If the system is automated, how do you get in touch with ACS support at the IRS?

Here are a few steps to take:

Pay Attention to Your Notice Details

Any notice you receive from the ACS IRS will have contact information on it, including a phone number you can call for support or questions. This is where you should start. The physical IRS ACS correspondence address may vary, so only use what’s on your notice.

Prepare to Wait

You may have to wait when you’re trying to talk to an ACS agent, as they’re dealing with many different phone calls related to ACS notices and issues. Try to be patient if you want to talk to someone about your case.

Explain Your Situation

When you work with ACS support, remember that you won’t be talking to the same agent each time you call in. There isn’t just one ACS agent assigned to your case. So, you will likely have to explain your situation and provide details each time you call in.

Request a Revenue Officer 

If you’re having a lot of issues getting your matter resolved and have had no luck with ACS agents, you can request to work with a revenue officer. Your request may or may not move forward, but it could be worth a try so you can only deal with one person. 

Request a Collection Due Process (CDP) Hearing

You have the option to request a hearing if you have tried negotiating with the IRS and you aren’t making any progress. You have 30 days to request a hearing after receiving a lien or levy notice. 

Call the General ACS Number

Always try the number on your relevant notice to reach ACS support, but you can also call the IRS ACS phone number at 1-800-829-1040 to talk to someone. This line should be available 24 hours a day.

Be Honest but Only Provide What’s Requested

You must be open and honest with the IRS about your tax situation. Trying to cover something up or lie will only lead to further issues. However, remember that you only need to provide the exact information requested by the IRS and nothing more.

Watch for Scams

The IRS ACS sends notices and payment requests through the regular mail. Remember this if you receive any other type of ACS correspondence, such as an email or text message, as these are probably scammers trying to get your information. Criminals often impersonate the IRS, so if you’re unsure about ACS correspondence, contact the IRS right away to ensure it is legitimate.

Ask a Tax Expert

Dealing directly with the IRS, including ACS agents, can be stressful and frustrating. Remember that you can always talk about your issue with a tax professional who understands tax law and how the IRS operates. Talk to a tax expert when you are trying to negotiate with the IRS. 

Other Options If You Can’t Pay Taxes 

Your ACS notice may include a balance that you just can’t afford to pay right now. How do you respond when you can’t pay your tax bill? 

Fortunately, the IRS offers several options that will delay collections or settle your debt. Then, you should receive additional notices from the ACS demanding payment. 

Here are other options for moving forward when you receive an ACS notice:

Apply for an Installment Agreement

Setting up a payment plan is one of the fastest ways to stay in good standing with the IRS. If you receive a notice demanding payment, you may be eligible to apply for an installment agreement online, and if you owe too much to apply online, you can apply over the phone or through the mail. 

Send an Offer in Compromise

Another option is the offer in compromise. You can request this from the IRS by sending in an offer amount that you can afford to pay, hoping that the agency will settle your debt for less than what you owe. If the IRS believes your offer is all they can reasonably expect to collect from you, they will accept your offer. You will likely need to have good reason and proof to show the agency to back up your claims.

Ask for a Collections Delay Due to Financial Hardship

The IRS may grant you something called currently not collectible (CNC) status, which means they will temporarily cease collections on your account. You need to show the IRS that you are dealing with some kind of financial hardship that limits your ability to pay your tax bill. When your financial situation improves, collections will begin again. 

Request Penalty Abatement

If your situation involves failure-to-file or failure-to-pay penalties, and you have a strong history of tax compliance, you can apply for first-time penalty abatement to get your penalty waived (though this won’t waive your unpaid balance). You need to have complied with tax law during the last three years without any penalties in those years. You can also get penalty waivers for reasonable cause, which just means that you had a strong reason for paying late such as a death or illness.

CDP Appeals 

To request a CDP hearing and start the CDP appeals process, you’ll need to file Form 12153 with the IRS. The agency will stop collections once you file this form. The hearing will allow you to meet with an appeals officer and talk through your case and your dispute.

Working with a Tax Attorney on Your IRS ACS Issue

Getting a notice in the mail from the IRS Automated Collection System can feel daunting. These notices are automatic, and trying to negotiate with the IRS or get your issue resolved can be a long, frustrating process, especially when you have to deal with an ACS agent who isn’t familiar with your case. 

Anytime you receive an IRS notice in the mail or you can’t afford to pay your tax bill, it’s wise to work with a tax attorney. Tax professionals understand all options available to you to get your matter resolved. Tax law is always changing, and attorneys understand all the nuances that apply to your situation.

Damien’s Law is experienced in helping taxpayers resolve issues like tax debt, appeals, ACS notices, installment agreements, penalty relief, audits, tax liens and levies, and much more. We get to know your situation so we can come up with the best way forward that meets your needs. Get in touch with Damien’s Law today to talk to a tax expert about your case.