The beauty of our work, or should I say the beast of our work is holding for ACS (Automated Collection System) or Group. A brief IRS explanation of ACS and its processes can be read here.
One of the most valuable services we provide for our clients is piece of mind and time. Our clients need time free from enforcement action to allow us to work toward providing the service they hired us for. Usually when are clients come aboard they have levies in place on their wages or bank accounts. Our goal is to stop these aggressive measures from taking place and advise the IRS we want to resolve the account. In order to bring resolve to the situation we need time free from enforcement or as we call it, "a hold on the account".
When a case first comes aboard we complete an initial investigation, i.e. find out how much the client owes, see if they have missing returns, check the transcript record for final notices that may have been filed, etc. In order to secure this information we file a form called a 2848 and another form called an 8821. We then make it a point to contact ACS, to make sure there is a substantial hold on the account to buy time for us to prepare and submit a financial statement, if necessary, and a proposal. This time, usually 30 - 60 days depending on the circumstance, is crucial to keeping the client protected while we endeavor to seek the most favorable resolution. We usually spend an hour on the phone with the IRS. As painstaking as it might be, it provides our clients with the piece of mind that they need.
If there is one thing that is certain with the IRS it is deadlines. If deadlines are met and upheld, the IRS will work with you to establish a resolution.
This post is a glimpse into workings of the IRS.