The IRS reports that certain collection and enforcement processes that were curtailed during the pandemic are being resumed. On June 15, 2021, the IRS began contacting taxpayers who failed to reply to prior tax bill notices. The automated IRS lien and levy programs have been idled since April 2020 due to the pandemic. However, now the IRS is returning to normal collection processes.
Balance due notices, levies and liens. Normally, after the tax filing deadline, those that owe a tax bill will be sent an automated balance due notice. On June 15, 2021, the IRS resumed sending follow-up letters to taxpayers who did not respond to prior notices. These letters notified the taxpayer that they have 30 days (45 days if out of the country) to respond or pay the tax debt due. Taxpayers who do not response to these letters could be facing levies or Notice of Federal Tax Lien filings beginning August 15, 2021.
The IRS, working with other state and federal agencies, will begin to levy taxpayer assets via the following programs beginning July 15, 2021:
- Federal Payment Levy Program – The IRS can collect a taxpayer’s overdue tax bill through a continuous levy on certain federal payments disbursed by Bureau of Fiscal Services.
- State Income Tax Levy Program – The IRS can levy a taxpayer’s state tax refund.
- Municipal Tax Levy Program – The IRS can levy a taxpayer’s city/municipal tax refund.
Revoking Passports – Along with the levy and lien processes, the IRS can also use their authority to notify the Department of State to revoke passports of taxpayers with seriously delinquent tax debt.