The 2012 Fresh Start Initiative and the relaxing of lien filings and levies during the past five years has relieved burden on taxpayers and the resource-constrained IRS. 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.
During the past five years, new laws and IRS administrative changes to collection policy have been frequent, and can be hard for taxpayers and tax professionals to keep up with. This year has been no exception; in fact, 2017 has seen these six important changes to IRS collection policy.
1. Private debt collection begins
The impact: With the onslaught of tax identity theft schemes, taxpayers face new complications when an outside agency contacts them. Is the phone call real, or is it a scammer? To combat confusion, the IRS and collection agencies will send letters to these taxpayers ahead of time to notify them that a debt collector will call. The program is starting now, and the National Taxpayer Advocate will likely weigh in soon on its impact to taxpayers and the IRS's efforts to combat tax identity theft. Stay tuned.