Why come to a resolution regarding your tax debt?
There are more than 14 million people in collection status with the IRS as of 2017. This number has only grown. As a response to the 2020 pandemic the IRS suspended a majority of collection activity for a time. But that time has now passed. The IRS is back to taking collection actions as of July 15, 2020. It is true that, from my experience, the culture of the IRS has shifted somewhat from being extremely aggressive with taxpayers to being (or trying to be) more friendly towards taxpayers. However, at the end of the day their goal is to raise revenue for the Federal government and they have some very powerful tools to do so. To learn more about the IRS collection process click here.
The IRS (in conjunction with the State Department) can, under the FAST act, suspend your passport or deny the issuance of your passport if you owe more than $50,000. Some States, such as California, can suspend your driver’s license. When California suspends your driver’s license due to a tax debt it is a lot of work to get it undone.
Some of your options to keep your passport from being suspended / revoked / denied include getting compliant with back taxes filings and paying the tax through an installment agreement or an offer in compromise. It’s possible, according to IRS policy (but not law) that getting into currently non-collectable status may help you get your passport issue fixed. However, currently non-collectable status isn’t technically one of the options under the FAST act.
The IRS can take much more aggressive steps than simply suspending or denying your passport. The IRS can levy your wages or property (including taking and selling your home).
With the advance of technology the IRS knows more about taxpayers than ever before. It’s possible that there are so many more cases in collections because technology keeps improving. If you think you can hide instead of fixing your problem you are most likely wrong. Further, resolving your IRS debt can bring you a sense of peace rather than the distress of knowing the IRS has set its collection sights on you.
If you have a tax debt with the IRS and need help contact Camphuis Law. Attorney Matthew Camphuis has experience negotiating with the IRS and cares about his clients. Contact Camphuis Law to see if Camphuis Law can help you get compliant and come to a reasonable resolution option.
About the author: Matthew W. Camphuis is an attorney licensed by the California State Bar and the Central District Court. He focuses on IRS tax debt controversy, IRS tax audit defense, California State Tax Controversy, chapter 7 bankruptcy, and wills and trusts. His office is located in Ontario, California and he serves the Inland Empire and High Desert communities in Southern California.
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