Understanding IRS Letter 3164: How Steve Perry, EA Can Help

Receiving any letter from the IRS often brings concern and uncertainty. One such letter that taxpayers may receive is IRS Letter 3164. Understanding the purpose of this letter and knowing the options available is essential. With the assistance of Steve Perry, EA, of Books, Taxes and More, taxpayers can navigate this process with confidence and clarity.

IRS Letter 3164 serves a very specific purpose in the IRS collection process. It notifies taxpayers that their account may soon be assigned to a private collection agency. The IRS uses private collection agencies to pursue certain overdue tax debts that have remained inactive or unresolved for a significant period. This letter is not a demand for immediate payment, nor does it indicate that enforcement action is imminent. Instead, it is a courtesy notice that gives taxpayers an opportunity to resolve their outstanding balance directly with the IRS before any private agency becomes involved.

The primary purpose of Letter 3164 is to inform and protect taxpayers. Federal law requires that taxpayers be notified in advance of any referral to a private collection agency. This allows them time to review their situation, gather information, and take action if necessary. It also ensures transparency in the IRS’s collection procedures.

For many individuals, receiving Letter 3164 can create anxiety. Unfamiliar terms, unclear amounts, and the prospect of dealing with a collection agency may feel overwhelming. This is where the expertise of Steve Perry, EA becomes essential. As a federally licensed tax professional, Steve Perry, EA of Books, Taxes & More, has the knowledge and experience to review the taxpayer’s situation, explain the letter in detail, and guide the next steps.

The first step Steve Perry, EA often takes is to analyze the taxpayer’s account. This includes verifying the accuracy of the debt, reviewing IRS account transcripts, and identifying any possible errors. In some cases, taxpayers may find that they do not owe the full amount, or that previous payments or filings were not properly applied. Careful examination can uncover opportunities to reduce or eliminate the debt.

If the tax liability is valid, Steve Perry, EA can assist in exploring all available resolution options directly with the IRS. These options may include establishing an installment agreement that allows manageable monthly payments, submitting an Offer in Compromise to settle the debt for less than the full amount owed, or requesting Currently Not Collectible status if financial hardship prevents payment. Resolving the matter with the IRS before private collection agencies become involved often results in a simpler and less stressful process.

Even if the IRS has already transferred the account to a private collection agency, taxpayers retain the right to work directly with the IRS. Steve Perry, EA can continue to advocate on behalf of the taxpayer, contact the IRS directly, and negotiate solutions that protect the taxpayer’s interests.

IRS Letter 3164 should not be ignored. It presents an important opportunity to resolve tax debt proactively. With professional guidance from Steve Perry, EA, of Books, Taxes & More, taxpayers can address their situation head-on, avoid unnecessary complications, and regain financial peace of mind. Books Taxes & More is here to support taxpayers every step of the way.