Since the COVID-19 pandemic, the Internal Revenue Service (IRS) has had a long backlog that, due in part to funding received in the Inflation Reduction Act of 2022, it only began to catch up on in mid-2023. In the meantime, the IRS’s backlogs and delays might have lulled taxpayers into a false sense of security. [...]
On March 25, 2020, the Internal Revenue Service (IRS) released guidance related to its “People First Initiative,” a program intended to respond to the challenges of Covid-19, by providing a variety of relief related to IRS deadlines and collection actions (for more information on the IRS’s People First Initiative, please see our previous blog articles [...]
In light of the current Covid-19 pandemic, the Internal Revenue Service (IRS) extended the April 15, 2020, filing and payment deadlines for federal individual income taxes for the 2019 tax year to July 15, 2020. Due to the pandemic, many taxpayers are finding themselves in difficult financial circumstances. They are unable to pay their [...]
The Internal Revenue Service (IRS) announced, in a recent Information Release and Fact Sheet, that it is going to make more site visits to taxpayers who have delinquent-filed tax returns. Fact Sheet 2020-02 notes that this increased use of compliance strategies is being fueled by the IRS’s increased use of data analytics, research, and other [...]
When an individual has outstanding federal tax liabilities, the Internal Revenue Service (IRS) has a number of tools at its disposal to try to collect the liabilities from the individual, including levying the individual’s wages (I.R.C. § 6331(a)). When the IRS issues a wage levy notice to an employer, the employer must pay the IRS [...]
Defaulted Installment Agreements The IRS expects taxpayers to pay all of their tax liabilities in full, at the latest, at the time the liabilities are due. When this is not possible, the IRS may allow taxpayers to pay their liabilities during a period of time through a monthly payment plan. These payment plans are called [...]
We often receive telephone calls and e-mails from individuals and businesses who have been contacted by the IRS for a tax obligation owing and they don’t know what to do. There are many options for dealing with these obligations. The correct option depends on the facts of the case. Unfortunately, too often, an individual or [...]
A key factor for most taxpayers negotiating a payment plan or a compromise with either the Internal Revenue Service (IRS) or Minnesota Department of Revenue (MDR) is calculating their ability to make monthly payments. The taxpayer may want to use his or her current income while the IRS or the MDR may insist on using [...]