I had the opportunity to listen to a podcast hosted by attorney Eric Green. His guest on the podcast was Rocco Steco, the Acting Director for Collection Policy at the IRS. Many temporary procedures were implemented during the COVID-19 pandemic to make life easier for the IRS and the taxpayers. Mr. Steco gave the listeners an update on many of those collection policies.
- The $250,000 streamlined installment agreement is now permanent. This is where the taxpayer owes less than $250,000 and can pay the IRS back over the remaining statute of limitations (SOL). In this case, the taxpayer won’t need to present the IRS with financial statements to get into an installment agreement.
This program benefits taxpayers who address their tax problems early. Suppose too much time goes by, and the IRS assigns your case to a revenue officer. In that case, the $250,000 threshold isn’t available, and it reverts to the previous amount of $50,000 being paid back over 72 months or the remaining SOL, whichever is shorter.
- The IRS made the change from 120 days to 180 days for short-term installment agreements permanent. If you owe less than $100,000 and can pay your balance in 180 days or less, you can apply for the short-term installment plan on the IRS website without submitting financial information.
- It used to be when a taxpayer was in an installment agreement and filed their tax return with a balance due, that amount needed to be paid immediately, or their current installment agreement would be terminated. At that point, the taxpayer would need to start the process again. This was a waste of time for both the taxpayer and the government. The IRS will now roll new balances into the existing installment agreement rather than defaulting on the original agreement.
- Surprise visits by Revenue Officers have almost completely stopped except for rare cases. Revenue Officers are still encouraged to drive by the taxpayer’s home or business to observe what is happening. They like to see the condition of the home and the type of vehicles parked in the driveway.
If you would like to discuss your business or personal tax planning, tax preparation, and other financial concerns with an experienced tax professional, we invite you to call 610-594-2601 today to make an appointment at our Exton, PA office to discuss your situation. You can also schedule a consultation at Click Here.
Copyright © 2023 Keystone Financial Solutions, Inc. All rights reserved. BE SURE TO READ THE DISCLAIMER PAGE: Content in this blog is for educational purposes only and should not be considered as the rendering of tax, legal, or investment advice. The publisher of this blog makes no representations as to the accuracy or completeness of any information herein, will not be liable for any errors or omissions, and shall not assume liability for any losses, injuries, or damages from the display or use of this information.
About Bryan Haarlander, EA, CTRS:
Bryan Haarlander is an IRS-licensed Enrolled Agent and a Certified Tax Resolution Specialist who owns and operates a specialized tax services firm serving clients in the western suburbs of Philadelphia, PA. This includes the cities of Chester Springs, Coatesville, Collegeville, Devon, Downingtown, Exton, King of Prussia, Paoli, Philadelphia, Phoenixville, Pottstown, Radnor, Reading, Wayne, and West Chester. We also serve clients in Delaware, New Jersey, New York, and the United States.
Bryan is well-known for his IRS tax resolution expertise and his book How to Resolve Your IRS Tax Debt Problems.
