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IRS Reopening Pre-COVID Collections Practices

This past week, the Commissioner of Collections with the Internal Revenue Service revealed that they plan to reopen automated collection and enforcement practices which have been halted since COVID-19 disrupted our lives in early 2020.

Who will be affected?

While IRS Field Offices reinstituted their collection and enforcement practices last year, the IRS had not yet made the decision to turn on the enforcement capabilities of their automated systems. IRS automated systems affect a far greater number of American Taxpayers than those assigned to field offices. The change to reopen these lines of collection will have much greater implications for taxpayers who currently owe balances to the IRS.

Front of Internal Revenue Service Building

The move comes as the IRS also onboards new employees to assist in relieving the backlog of unprocessed tax returns, audits, and other taxpayer requests.

What practices are coming back?

Taxpayers should anticipate a return to more normal communication from IRS Service Centers via US Mail. It is important to note that the IRS will never call you to request payment over the phone, nor will they make these types of demands via email. Should you begin receiving collections notices from the IRS, be sure to pay attention to any deadlines that may be listed and follow any directions provided.

Taxpayers who owe balances to the IRS that have gone untended for the last few years will want to begin reaching a resolution sooner rather than later. This will ensure the reopening of automated levy and garnishment programs does not affect your bank accounts or paychecks.

If you’re a truck driver who is behind on filing multiple years of tax returns and may owe thousands of dollars to the IRS, click here to learn more about how we can help, or give us a call at (866) 920-2827.

It is anticipated that the IRS will begin returning to more aggressive means of collecting balances owed to them where a payment plan or other resolution does not exist. They have committed to communicating with taxpayers clearly and “vigorously” in advance of this becoming normal practice once more. However, being proactive now will put taxpayers ahead of the game.

Additionally, the IRS is directing agents to move more swiftly when it comes to addressing non-filers. Taxpayers who are missing tax returns – especially where income sources were 1099 – should move to get caught up in order to avoid the IRS filing higher than necessary balances on their behalf. Filing original returns is always a better position than being forced to address balances based on tax returns the IRS prepares.

What should be done by those who are behind on their taxes?

As the IRS makes a return to more targeted and aggressive means of collection, it is important to be sure all outstanding issues have been addressed in order to avoid any financial impediment enforcement can cause. ATBS’ team of tax and tax resolution experts is here to be of assistance when it comes to any and all questions related to the IRS and your account with them.

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