Caution: Just Because the IRS Said It, Doesn’t Mean It’s True
Understanding the Limits of What IRS Collection Agents Really Know
It might surprise you, but one of the most common things I hear from clients is: “Well, the IRS told me…”
That phrase is often followed by something completely incorrect, misleading, or misstated, whether it’s about how much time the IRS has to collect (CSED), what kind of installment agreement you qualify for, how much you owe, or whether you even still owe at all.
And the hard truth is this:
Just because an IRS collection agent says something doesn’t mean it’s legally accurate.
The IRS Is a Powerful Agency, But Their Agents Get It Wrong. A Lot.
The IRS is intimidating, I get it. But the mistake people make is assuming every IRS employee is a tax expert or a licensed professional. That’s simply not the case.
IRS ACS (Automated Collection System) employees are not CPAs, EAs, or attorneys.
They are trained to follow internal procedure manuals, not to interpret tax law.
Their job is to collect, not to give you neutral or accurate tax law guidance.
And because of that, it’s not uncommon for IRS employees to:
Misstate CSED (Collection Statute Expiration Date) timelines
Tell you you’re not eligible for a type of installment agreement, when you are
Understate or overstate your balance because they haven’t properly reviewed all modules
Overstate what your minimum monthly payment can be or if you can qualify for paying less
Push you to pay now, or else, without explaining your appeal rights
Be overly “nice” just to get you talking and then document everything you say into the IRS system
They’re Not Helping You, They’re Doing Their Job (Which Is to Collect)
This isn’t about demonizing IRS employees. Most are simply doing their job. But you need to understand:
That job is not to protect you. It’s to protect the government’s interest.
When an IRS agent seems helpful perhaps by offering you a payment plan or delaying a levy, many taxpayers feel relieved. But what they offered was likely your legal right anyway, not a favor. The IRS doesn’t “give you a break”, they follow their procedures, which are public, codified, and enforceable.
Let’s say an agent delays action for 30 days. That sounds generous, right?
Not if you didn’t know that you had a legal right to request up to 120 days, or that you might have qualified for “Currently Not Collectible” status based on financial hardship.
It’s Not About Opinions, It’s About Code and Authority
Here’s what separates licensed tax professionals from IRS phone agents:
We cite the Internal Revenue Code (IRC) ,which is the law.
We follow and hold the IRS accountable to the Internal Revenue Manual (IRM), which is their own procedural guide.
We don’t take what an agent says at face value, we ask, “What code section or IRM citation are you referring to?”
And you’d be shocked how many times the IRS employee responds with silence or has to walk it back.
We’ve Had to Escalate Cases, Even When IRS Agents Were Adamant
In many cases, we’ve spoken to IRS agents who were absolutely confident about something, whether it was denying an installment agreement, refusing to stop a levy, or claiming a balance was still collectible, and we had to:
Escalate to a supervisor
Push the issue to IRS Appeals
Provide direct IRM citations that proved the agent was wrong
And guess what?
They walked it back.
Not because they wanted to but because they had to once the law or policy was put in front of them.
The IRS Uses Different Tactics to Collect, Know the Game
Different agents have different approaches. Some will:
Use fear: “If you don’t pay today, we’ll levy your bank account.”
Use friendliness: “I want to help you, let’s go over everything together…” (while noting everything you say in your case file)
Use urgency: “This is your only shot at a payment plan.”
These tactics are designed to get you to comply quickly, often without fully understanding your options. And every time you speak, they are recording your information, updating your file, and possibly creating a situation where the IRS has more leverage against you.
Don’t Go In Blind, Always Have a Game Plan
When you call the IRS without a plan, you’re walking into a conversation where one side knows the system, and the other side doesn’t. That’s why representation matters.
You need someone who can:
Ask the right questions
Push back when something is misstated
Demand proper procedure
Know when to escalate and how to apply the law
Because at the end of the day, IRS collection employees don’t get the final word, the law does.