IRS Collections- State of the Union Address- 07/14/2021
What We Already Know
New Commissioner – Charles Rettig- Prior California tax controversy Lawyer, first time insider the job was not given to a Washington Insider. In January 2020, IRS announced plans to Ramp-up Enforcement…
Country shuts due down to COVID throwing millions into financial distress.
26 million taxpayers owe the IRS $1,000,000,000,000 (Trillion!) Up from 458 Billion.
7.5 million people don’t file their returns every year (non-filers)
Many Taxpayers didn’t file 2020 because they didn’t have the money to pay…
Those that filed and received unemployment are discovering they owe and can’t pay because they didn’t withhold taxes or under withheld.
10,000’s of businesses closed for good and owe payroll taxes which may be subject to the Trust Fund Recovery Penalty (personal liability)
8.2 million people already in the Collection Division of IRS right now! (Not counting the coming COVID-19 Tsunami)
In 2021 IRS announces they are hiring 87,000 new Revenue Agents (Auditors) and Revenue Officers (Collectors), DOUBLING their workforce over next 6 years.
The Biden Administration pledges $80 BILLION toward IRS enforcement activities over next 10 years.
Timeline
6/15/21 after 15 months of no collection actions, IRS issued millions of Final Notices of Intent to Levy (Letter 1058 and Letter 11)
06/15/21 Crypto Currency Traders – After receiving information from Coinbase and other platforms in a John Doe Summons, they sent a first letter asks taxpayers to “file delinquent return or file amended returns” and warns those that fail to accurately report crypto transactions will be subject to civil and criminal enforcement.
07/15/2021 Passport Certifications reinstated for those whose passport were revoked or not renewed due to outstanding debts over a specific amount.
8/1/21 Moratorium on Levy’s Lifted- Open season on aggressive collection actions (wage garnishment, bank levies, assets seizures
08/1/21 Letter 1058/Letter 11 issued 06/15/21 will be followed up with Bank Levies, Wage Garnishments and Lien filings (668-W(ICS), 668-W(C), 668-A(C),
08/01/21 Revenue Officers will be pursuing 880,000 High-Income non-filers who owe an estimated $46 Billion.
08/01/21 Crypto Currency Traders – Will send out second round of letters The letter asks taxpayers to “file delinquent or amended returns” and warns those that fail to accurately report crypto transactions will be subject to civil and criminal enforcement.
Previous Instituted
New Streamline Installment Agreement: Debt $100k-$250k, only through Automated Collection Service Division- Not through a Revenue Officer- No Form 433-A required, MUST Full pay the debt in 72 months, a LIEN will be filed.
Central Authorization File (CAF-Form 2848, Form 8821) unit open -15 days to get Power of Attorneys on file.
Automated Collection System (ACS) open for business.
IRS is Targeting Certain Taxpayers
“Worker Classification” Audits; W-2 vs. 1099
Abusive trust arrangements to conceal ownership of assets and income.
Micro-captive insurance structures, they are not really considered insurance by the IRS.
Land conservation transactions aka syndicated easements.