IRS Collections- State of the Union Address- 01-19-2022
IRS is in “Crisis” per the National Taxpayer Advocate- 01-11-2022
- Telephone service is at the service’s worst in history- only 11% or 32M of the 282M calls received were even answered
- 14 Million “math errors” in 2020 took on average of 199 days to resolve
- There is currently a backlog of 8.5 Million 1040s yet to be processed, and they are taking an average of 8 months to process
- 5 Million Form 941s still have not been processed for 2021
- IRS is projecting 30 Million 6419 (Advanced Child Tax Credit) and 6475 (Stimulus Payment) Notices for the 2021 tax year, holding up refunds for 8-9 months
- IRS is back with a vengeance- Liens and Levy’s raining from the sky
- IRS is targeting side hustles with income over $600 (Paypal, Upwork, Venmo, Zelle, eBay, Amazon, Etc)
- Revenue Officers (ROs) are pursuing 880K High Income (over 100K income) non-filers projected to owe over 46B
- As of 2021 IRS is asking EVERY taxpayer about Cryptocurrency transactions
- Beginning in 2022, Crypto exchanges must obtain a W-9 from their costomer to avoid the 24% backup withholding on Crypto transactions in 2022
- IRS has a new Crypto Unit staffed by 500 Agents actively pursuing unreported cryptocurrency income
- IRS has hired, in the last 14 months, 12,000 new Automated Collection System (ACS) agents
- IRS has hired, in the last 14 months, 5,000 new Revenue Officers (ROs)
- Passport Certification reinstated (>54K in debt, a passport may be revoked or not reinstated
- IRS Private Collection Agencies contracts awarded to CBE Group, Coast Professional, Inc, and ConServe
- IRS is allowing the taxpayer to appoint a Power of Attorney online
- IRS is actively pursuing “Worker Classification” audits (W-2 vs. 1099)
- 80 Billion funding bill did not pass Senate as part of the Build Back Better Bill for IRS funding, likely to pass in pieces early in the year.
- New Commission- Charles Rettig has a background in Tax Resolution