IRS Automated Collection System (ACS): How It Collects Your Tax Debt

What is ACS?

The Automated Collection System (ACS) is the computer system that the IRS uses for automated tax collection. The ACS can send notices, issue tax liens, and initiate collection actions like wage garnishments and bank seizures. There are also IRS call centers associated with the ACS across the country. If taxpayers receive ACS notices and call the IRS, their calls are routed to an ACS center, but ACS call center employees may also call delinquent taxpayers and perform some limited collection actions. 

Not all back taxes are collected by the ACS. The IRS may also assign your case to a Revenue Officer, and that typically happens if you owe over $100,000, have a complex tax case, or have a history of noncompliance. 

Key takeaways

• ACS - IRS's Automated Collection System
• Notices - sends CP notices such as CP14, CP501, CP503, and CP504. 
• Collection actions - may initiate tax liens, wage garnishments, and bank seizures.
• What to expect - when you call the ACS, your call will be routed to a random employee who has no prior contact with your case.
• Revenue officer escalation - if you don't make arrangements on your tax debt, the IRS may assign your account to a revenue officer for hands-on collection.

 

What to Expect - Dealing with the IRS’s Automated Collection System

When the IRS assigns your case to ACS, you do not deal with any specific or designated agent. Instead, when you call, you talk with the first available agent, typically after a long hold of 15 to 30 minutes, or maybe even an hour or longer. Once you get an ACS agent on the phone, you may have to explain your case even if you have called many times before. Agents take notes during calls, but each time you call, the new agent has to review the notes to see what's going on with the case, and the notes aren't always thorough.

Once the agent familiarizes themselves with your case, they may be able to answer your questions, help you set up payments, or offer you penalty abatement. However, in other cases, they may not be able to answer your questions or help you understand relief options - unfortunately, ACS employees have the least training of any IRS representatives who deal with the public. 

The ACS Collection Process

If you incur a tax debt by filing a return and not paying or when the IRS adjusts your tax return due to an audit or a non-audit adjustment, your account will be assigned to the ACS. This typically happens a few weeks or months after the tax debt is assessed. At that point, you will receive the following notices. Once they start coming, they will arrive about every six to eight weeks if you don't make arrangements to pay your tax debt:

• CP14 (Initial Notice of Balance Due) - This is the first notice sent when your account is assigned to the ACS.
• CP501 (First Reminder of Taxes Due) - This is a demand for payment.
• CP503 (Second Reminder of Taxes Due) - This is another demand for payment.
• CP504 (Intent to Levy Assets) - The IRS is going to seize your state tax refund and move forward with more collection actions if you don't set up payments.
• CP90 (Final Intent to Levy Notice) - The IRS will seize your assets through wage garnishment or bank levies if you don't set up payments or appeal within 30 days.

As you can see, the first few notices are just reminders that you owe back taxes. If you ignore these notices, nothing drastic will happen, but the IRS will add interest and penalties to your account. However, once you get to CP90, you only have 30 days to take action, and if you don't, the IRS will move forward with garnishing your wages and/or seizing your bank account. Once those actions happen, they're hard to undo - so make payment arrangements as soon as you can. Note that the ACS may send other notices - for exampe, the LT11 about levies.

ACS v. Revenue Officer

IRS tax debts are either collected by the ACS or revenue officers, or sometimes, they're transferred to private collection agencies. Sometimes, the IRS transfers accounts from the ACS to a revenue officer - usually because the tax debt is high balance, close to the collection expiration date, involves complex taxes, or is owed by a taxpayer with a history of noncompliance. However, if desired, you can ask to have your ACS case transferred to a revenue officer. The ACS gets to decide whether or not to move your case, but they will consider your request. Here are the main differences between the ACS and working with a revenue officer.

• Availability - When you call the ACS, you generally have to deal with a long hold time, but you will always get to talk with a person. In contrast, you can only talk with your revenue officer when they're in the office, so you may end up playing phone tag.
• Meetings - Typically, you will never meet with an ACS employee face-to-face. A revenue officer may request an in-person meeting by sending a 725-B letter.
• Personalized attention -The random employees at the ACS may not understand the unique details of your case. A revenue officer, in contrast, will understand all the nuances of your case. That can help if you're trying to set up payments, but it also means that the revenue officer will be closely looking at your income and assets in case they need to collect the tax involuntarily. 
• One person - When you're assigned to a revenue officer, you have to work with that one person, and in most cases, you cannot request a new rep. However, with the ACS, you get to work with whoever answers the phone. There are pros and cons to both of these scenarios.
• Collection processes - Both ACS and revenue officers can file tax liens, garnish wages, and seize bank accounts. However, only a revenue officer can move forward with seizing physical assets.

Can you request to have your case be transferred from a revenue officer to the ACS?

No, once your case has been assigned to a revenue officer, you cannot request to have it moved back to the ACS.

Can the ACS revoke my passport for unpaid taxes?

Effectively, yes. Once your tax debt reaches a seriously delinquent level (over $65,000 as of 2025), the ACS can certify your debt to the State Department, and then, the State Department can revoke your current passport or deny your application for a new passport. 

What if my case is transferred to a private collection agency?

The IRS will send you a letter if your case is transferred to a collection agency. You can work with the agency to pay in full or set up payments, but you cannot apply for an offer in compromise. If desired, you can request to have your case sent back to the IRS.

How to Get Your Case Into a Different Section of the IRS - CDP Appeals

Federal tax liens and final levy notices explain your right to appeal with a Collection Due Process (CDP) hearing. You only have this right if you receive a notice alerting you about it or in certain other cases, such as if you applied for innocent spouse relief and haven't heard back for over six months. If you request a CDP hearing, that will stop all collection actions until the hearing is completed. Your case will be moved to the IRS Office of Appeals, where you can try to negotiate terms with a Settlement Officer. These people are typically better trained and more knowledgeable than ACS agents overall. 

The Scope of ACS - What ACS Can and Cannot Do

ACS can:

• Send computer-generated payment reminders and levy notices
• File a federal tax lien
• Seize your bank account
• Garnish your wages

This information they need to take these actions is usually already in their database. For example, the IRS has your bank and employee records such as W2s and 1099s. Before issuing a levy, ACS must send you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. You have 30 days to file an appeal, which will have the effect of temporarily stopping the levy.

ACS cannot:

• Seize your house, personal property, or business assets
• File lawsuits

When your account reaches a severe stage, it will be transferred to a local IRS Revenue Officer (RO). At this point, you will no longer be permitted to deal with ACS.  If you call ACS and they tell you an IRS collection office took on your case, it’s time to worry. Revenue officers are personally tasked with collecting tax debts, and they can seize your house, personal property, and business assets. If you haven’t done so already, at this point, it’s time to call a tax professional for help.

What to Do to Prevent Collection Actions

If you receive a notice demanding payment from the IRS, take it seriously. Call ACS at the phone number on the letter or call 1-800-829-1040. Be proactive in working out a deal. The IRS offers many options. If you are not sure what to do, our experienced network of tax professionals can guide you through dealing with ACS and the rest of the IRS bureaucracy. Use TaxCure to search for an experienced tax professional today.