Tax Dictionary – Automated Collection System (ACS)

IRS Definition

ACS is a computerized inventory system which maintains balance due accounts and return delinquency investigations.

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If you don’t pay your taxes after the IRS sends a series of notices to you (notice numbers CP14, CP501, CP503, and CP504), your account goes to the IRS collection unit. Then, you’ll be assigned to the Automated Collection System (ACS) or to a revenue officer. ACS is a system that collects taxes by taking your refunds to pay older balances and sending notices such as the LT11, Final Notice of Intent to Levy. If you don’t respond to the notice, ACS may levy (seize) your wages and/or bank account funds. If your tax balance is $10,000 or more, ACS may also file a tax lien that could reduce your credit score by as much as 100 points.

Learn what to do if you can’t pay your taxes.

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