5 Recent Changes to IRS Collection Procedures

Recently, joint research from the Internal Revenue Service and the Urban-Brookings Institute highlighted the results of many IRS enforcement activities, including the impact of past years’ changes to IRS Collection policy.

It is no secret that the IRS has been kinder and gentler to tax debtors during the past five years.

However, this more relaxed policy hasn’t resulted in maximizing collection for the U.S. Treasury. The IRS continues to tweak its collection policies and procedures to collect the most tax dollars.

1. Private Debt Collection Begins
2. Government revokes passports for taxpayers with seriously delinquent tax debt.
3. The offer in compromise program gets strict on filing compliance the IRS is traditional out taxpayers some extra time to file all their required returns during the application process for an offer. Those days are over. A recent change requires taxpayers to file all the required returns before applying for this tax that settlement agreement. Taxpayers have been filed and the IRS rejects their offer out right. The IRS gets to keep the down payment which can be as high as 20% of the offer amount.
4. Standard collection expense limits increased and
5. The IRS is testing fastener processing for certain high debt installment agreements $100,000.