Under which condition will the IRS generally not take enforced collection actions?

The IRS generally refrains from taking enforced collection actions in specific circumstances where it recognizes the taxpayer's situation may warrant leniency. One such condition is when the taxpayer is in bankruptcy. Under U.S. bankruptcy law, while a taxpayer is undergoing bankruptcy proceedings, an automatic stay is enacted, which temporarily halts collection efforts from creditors, including the IRS. This allows the taxpayer to reorganize their debts and come up with a repayment plan without facing immediate collection actions.

Another relevant situation is when the taxpayer is actively communicating with the IRS about their inability to pay. When a taxpayer demonstrates a willingness to engage with the IRS, it often leads to alternative arrangements such as installment agreements or offers in compromise, rather than aggressive collection tactics. This communication signals to the IRS that the taxpayer is taking their tax obligations seriously and is seeking a manageable way to address their outstanding debts.

Additionally, being recently unemployed may also factor into the IRS's decision-making but is typically not a standalone condition that guarantees an absence of enforced collection actions. The IRS may consider the totality of circumstances, including employment status, financial hardships, and communication efforts, in determining the appropriateness of collection actions.

Thus, when both bankruptcy status and proactive communication about financial difficulties are present, the IRS is more