San Francisco Tax Preparation / CPA: IRS Collection and Enforcement Update

Filed in CCH NEWS FEED by on July 24, 2021

Due to the recent progress the U.S. has made in controlling the COVID-19 pandemic and returning to normal economic activity, the IRS plans to return to its normal casework processes later this summer. The IRS has kept its systematic and automatic lien and levy programs idle since April 2020, in response to the pandemic. The IRS will also begin to follow-up with taxpayers who failed to respond to prior balance due notices. Taxpayers will be notified that they have 30 days (45 days if the taxpayer is out of the country) to respond to the notice or pay the tax bill. Taxpayers who fail to respond could be subject to levies or Notices of Federal Tax Lien Filings, beginning August 15, 2021.

Additional tax collection process will resume as follows:

  • revocation of passports of taxpayers with seriously delinquent tax debt, beginning July 15, 2021;
  • coordination of Federal Payment Levy Program (FPLP), State Income Tax Levy Program (SITLP), and Municipal Tax Levy Program (MTLP), beginning July 15, 2021;
  • Alaskan Permanent Fund Dividend Program (AKPFD), beginning August 15, 2021;
  • mailing of balance due notices and final notices by Automated Collection System, beginning June 2021; and
  • issuance of systemic levies and Notice of Final Tax Liens, beginning August 15, 2021, if taxpayers fail to pay, establish a payment plan, or reach an agreement with the IRS that the taxes are uncollectible.

More information regarding the IRS’s operations during the COVID-19 pandemic can be found at https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue.