Which circumstance allows the IRS to collect owed taxes through enforced collection?

The circumstance that allows the IRS to collect owed taxes through enforced collection occurs when the taxpayer has filed a return but failed to pay. When a taxpayer files a return, it demonstrates their acknowledgment of tax liability for the given year. However, if the payment is not made, the IRS is legally permitted to initiate collection activities to recover the owed amount. This could include garnishing wages, levying bank accounts, or placing liens on property.

In contrast, filing for bankruptcy generally invokes an automatic stay on collections, meaning the IRS cannot collect on debts until the bankruptcy proceedings are resolved. Communication issues or thresholds of income do not directly correlate to the IRS's authority to pursue enforced collection actions; communication issues may rather delay the process, and a low income may place the taxpayer in a scenario where they qualify for various relief options rather than enforcement actions. Therefore, the most clear-cut situation that empowers the IRS to take collection measures is when the taxpayer has taxes due as reported on a filed return, but has not made any payment.