San Francisco Tax Preparation / CPA: IRS Announces Shift in Procedure to Resolve Collection Issues

Filed in CCH NEWS FEED by on July 24, 2021

The IRS has announced that the Small Business/ Self Employed (SB/SE’s) Automated Collection System (ACS) would now exclusively resolve collection issues. Under this new shift in procedure, Practitioner Priority Service (PPS) assistors will not be able to take any actions for collection activities, including installment agreements and short-term payment plans. However, PPS assistors will continue to work with Forms 2848, Power of Attorney and Declaration of Representative, 8821, Tax Information Authorization, and 8655, Tax Information Authorization. Accordingly, taxpayers, or their authorized representative, must contact ACS to resolve these account issues. Additionally, PPS assistors will assist practitioners with their clients’ tax issues by verbally providing certain information from transcripts including, allocating misapplied payments, correcting math error issues, account adjustments, balance due and missing returns.

With changes to call routing, some third-party callers may need to be transferred to the correct IRS office. In order to minimize any service disruptions, the IRS updated the PPS automated recording to say: “If your client’s account is in Automated Collection System status, ACS, or you need to address balance due issues, press or say 4.” Further, the IRS stated that it would update its notices to ensure it contains the appropriate phone number for the area that is best suited to assist with the customer/client issue.