Any person who is called to provide information to the IRS, whether it be via records or oral testimony, is granted certain rights they may employ in their defense.  These rights include the Fifth Amendment Right against self-incrimination.  The Fifth Amendment grants that no one may be forced to give testimony as a witness against themselves.  It is important to note that information given voluntarily by the individual can be used to incriminate them, so the right can only be invoked to protect against an individual sharing testimony, not after the testimony has been given.

Any person who is called to provide information to the IRS is granted the right to an attorney, which includes the opportunity to hire one.  In addition to this right, any person appearing for an IRS Summons is given attorney-client privileges, or those of tax practitioner-client, wife-husband, or penitent-clergy.

Other powers granted the liable party include the right to create an audio recording of the meeting, as well as the right to ask to withhold a 3rd-party IRS Summons.  There are a number of more specific guidelines for the execution of this right, so under most circumstances, it would be advisable to seek the advice of an attorney to determine whether the exercise of this right could potentially aid the taxpayer.

Lastly, any third party summoned to the proceedings retains the right to opt not to comply with any unreasonable Summons and defend themselves from doing so accordingly.  Again, consult an attorney, whether the taxpayer under investigation or a third party, and you believe you may have been Summoned unreasonably.

The Automated Collection System (ACS) is the collection method most often implemented by the IRS. Millions of Americans nationwide have experienced or are currently experiencing this system. Often the first notification most taxpayers have that they have developed tax debt, the ACS is a largely computerized system and sends almost all of the notices and letters regarding the individual’s progress in the resolution of their tax debt.

Though the system relies heavily on computerization, it does entail a number of call centers, staffed with tax collectors who possess an in-depth knowledge base of collection practices. With call centers in cities, such as Seattle, Philadelphia and Buffalo, the automated collection system is spread across the US, and communicates with the vast majority of taxpayers who have a tax liability.

When an individual representing the IRS calls you, it is highly advised to respond honestly, completely, and candidly to his/her questions. They are focused on receiving full payment for tax debt, including the original unpaid tax, penalties assessed, and interest accrued. The ACS officials are given a number of tools to accomplish that goal and they are trained on how to fully implement those tools to resolve tax debt issues.

An ACS professional can garnish wages, place bank levies and tax liens. They are more likely to use any one of these methods to collect if they believe you are being dishonest, so the individual being assessed should not attempt to lie, circumvent questions or minimize the importance of the contact.