What is ACS?
The IRS collects taxes by assigning delinquent accounts to either the Automated Collection System (ACS) or a Revenue Officer. ACS is an IRS call center with multiple locations across the country. It sends out computer-generated notices demanding payment and handles incoming calls generated by those notices. ACS agents also call delinquent taxpayers and perform limited collection actions.
Since the IRS aims to collect taxes quickly and inexpensively, many accounts are assigned to ACS. The processes are computerized and automated. If you owe less than $100,000 in taxes, your account will likely be assigned to ACS. However, some straightforward cases over $100,000 may also be handled by ACS. If ACS cannot collect on an account, it may be transferred to a Revenue Officer for more drastic action.
Dealing with ACS
When your case is assigned to ACS, you do not deal with a specific agent. Instead, you speak with the first available agent, often after a long hold time. Each time you call, you may need to explain your case anew, as agents take notes with varying levels of detail. This can be frustrating after multiple calls.
ACS typically handles smaller accounts and those at the beginning of the collection process. ACS agents have the least training among IRS representatives, so their helpfulness can vary. If you encounter an unhelpful agent, you might want to call back later to speak with someone else.
Because your case is not “owned” by a specific agent, collection actions can be inconsistent. ACS prioritizes taxes owed by amount and length of time, focusing more aggressively on larger, older debts.
ACS vs. Revenue Officer
If you are tired of waiting on hold and explaining your case repeatedly, you might consider requesting a transfer to a Revenue Officer. However, this has drawbacks. With ACS, you are guaranteed to speak with someone, even if it involves long hold times. With a Revenue Officer, you can usually only speak with that person, and if they are unavailable, you must leave a message.
Revenue Officers often request in-person meetings to review your supporting documents. They will send a 725-B letter outlining the reason for the meeting and how to contact them. While Revenue Officers used to make unannounced visits, this practice stopped in July 2023.
You May Have No Choice but to Work with a Revenue Officer
When the IRS assigns a Revenue Officer to your case, it might seem beneficial to work with a single person. This can be true, as it eliminates long holds waiting for an ACS agent unfamiliar with your situation. However, the Revenue Officer assigned to your account is a matter of luck. Once your case is transferred to a Revenue Officer, you cannot revert to working with ACS. Additionally, it is nearly impossible to have your case reassigned if you find your Revenue Officer difficult to work with. Revenue Officers also have more authority over your property than ACS agents.
An Alternative to Transfer to a Revenue Officer
If you feel that negotiations with ACS are unproductive and they won’t transfer your case to a Revenue Officer, or if you prefer not to have your case moved, you might consider filing a Request for a Collection Due Process (CDP) hearing. This will halt all collection actions until the hearing is completed. Your case will be transferred to the IRS Office of Appeals, where you can negotiate with a Settlement Officer, who is generally more knowledgeable than ACS agents. However, there is no guarantee they will be easier to deal with. You can file a Request for a CDP hearing within 30 days of receiving a Notice of Federal Tax Lien or a Final Notice of Intent to Levy. The hearing date is usually set a few months or longer after your request.
The Scope of ACS
ACS can issue computer-generated levy notices, seize your bank account, and garnish your wages using information already in their database, such as your bank and employment records. Before issuing a levy, ACS must send you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing, giving you 30 days to file an appeal, which temporarily stops the levy. In some cases, the IRS may allow more time to file.
ACS cannot seize your house, personal property, or business assets, nor can it file lawsuits. When your account reaches a critical stage, it will be transferred to a local IRS Revenue Officer. At this point, you will no longer deal with ACS. If ACS informs you that your case has been taken over by an IRS collection office, it is a serious matter. The assigned Revenue Officer can file a lawsuit to seize your house, personal property, and business assets. If this happens, it is advisable to seek help from a tax professional.
Preventing Collection Actions
If you receive a notice demanding payment from the IRS, take it seriously. Contact ACS at the phone number on the letter or call 1-800-829-1040. Be proactive in negotiating a deal. The IRS offers various options, and if you are unsure what to do, our experienced network of tax professionals can guide you through dealing with ACS and the broader IRS bureaucracy.
Call Expert Accounting Services at (404) 719-0330 today, or schedule an appointment.
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