IRS Automated Collections Enforcement is scheduled to begin today. Tax Levies and Tax Liens may be filed against taxpayers that have received IRS balance due notices for unpaid taxes and have failed to respond to the IRS to resolve the matter. This balance due could be from the filing of a tax return with a balance due or from a tax audit that led to an assessment of additional taxes.
Tax levies allows the IRS to seize bank accounts, wages, commissions and other forms of income and assets of a taxpayer.
The filing of a Notice of Federal Tax Lien (NFTL) informs the public about outstanding IRS taxes. This will attach to any existing and future assets of the taxpayer such as real estate, vehicles, retirement accounts, investments, etc. An NFTL may negatively impact the ability to borrow funds from a financial institution.
Taxpayers that have received a final notice of intent to levy or have been informed that a tax lien has been filed may be eligible for an IRS Appeals hearing. It provides an opportunity to handle your tax matter and should be carefully considered.
The IRS froze their Automated Collection System (ACS) enforcement department at the beginning of the pandemic. It was a form of tax relief for taxpayers dealing with the public health and economic crisis. Currently, the IRS has determined that it is time to get back to tax collection enforcement after being on hiatus for almost a year and a half.