On June 15, 2021, the IRS began following up with taxpayers who have failed to respond to prior balance due notices. Due to the pandemic, the IRS has kept its systemic and automated lien and levy programs idle since April 2020. But the IRS now plans to return to its normal collection casework processes.
Balance due notices, levies and liens. Generally, balance due notices are automatically sent to taxpayers after the tax filing deadline to those the IRS believes have a tax bill. Beginning June 15, 2021, the IRS will begin sending follow-up letters to taxpayers who have failed to respond to prior notices. These taxpayers will be notified that they have 30 days (45 days if out of the country) to respond or pay their tax bills. Taxpayers who fail to respond to these additional letters could be subject to levies or Notice of Federal Tax Lien filings beginning August 15, 2021.
Levies in coordination with other state and federal agencies. The IRS will begin to levy taxpayer assets via the following programs beginning July 15, 2021:
Federal Payment Levy Program (FPLP, whereby the IRS can collect a taxpayer’s overdue taxes through a continuous levy on certain federal payments disbursed by Bureau of Fiscal Services);
State Income Tax Levy Program (SITLP, whereby the IRS can levy a taxpayer’s state tax refund); and
Municipal Tax Levy Program (MTLP, whereby the IRS can levy a taxpayer’s city/municipal tax refund).
The IRS will begin to levy taxpayer assets via the Alaska Permanent Fund Dividend Levy Program (AKPFD, whereby the IRS can levy Alaska Permanent Fund Dividends) starting August 15, 2021.
Passports. In addition to collection processes, the IRS says that, “[n]otifications to the Department of State (DOS) to exercise their authority to revoke the passports of taxpayers with seriously delinquent tax debt that they fail to pay will resume on July 15, 2021. [The IRS] resumed certifying tax debt as seriously delinquent to the U.S. State Department in mid-March 2021.”
If you need some assistance, we would be happy to help. Contact me, Crystal Wampler, or Amit Chandel, CPA, CTS, CTP, CTC, CVA, CTRS, CExP, CGMA, LLM (tax), Author, here or by phone at 562-281-1040. We are always available to answer any questions you may have.