Changes in IRS collection methods for 2017 that make it harder to resolve a delinquent taxpayer’s debt.

Changes in IRS collection methods for 2017 that make it harder to resolve a delinquent taxpayer’s debt.

  • May 9, 2017
  • David Greene
  • Comments Off on Changes in IRS collection methods for 2017 that make it harder to resolve a delinquent taxpayer’s debt.

Here are five new changes in IRS collections techniques. 1. The IRS is using private debt collectors for the third time.  They sometimes can be easier to deal with than a revenue officer, but usually they have less leeway in making a deal. If you case is sent to one, you will get a letter informing you of that before anyone calls.  2. If you owe more than $50,000 your name may be sent to the State Department by the IRS and the State Department will restrict your passport so that you cannot leave the country until the debt is paid down.  3. If you file an Offer in Compromise but have not filed all of the past six years’ returns, the Offer will be returned and the money you sent will be kept.  4. The IRS uses National and regional collection standards for food and clothing, housing, transportation, etc.  They generally do not allow the taxpayer to claim more in expenses than the standards.  The new standards that were published in March actually increase most of the allowable amounts, so this is helpful to us in negotiating a deal.  5. As part of the Fresh Start Program, the IRS has allowed taxpayers who owe less than $25,000 to enter into a Streamline Installment Agreement without showing financial records if they can pay off the debt in 72 months.  This has now been extended to $50,000 and the time limit is 84 months.  This will open the door for many new Installment Agreements where the taxpayer will not have to divulge his assets.

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