I often hear taxpayers justify ignoring the IRS because they are “small potatoes” and surely they aren’t big enough for IRS collection procedures. I can understand why they feel that way, since it’s often years in between the notices taxpayers receive. The IRS may threaten to levy your bank account or garnish your wages. When the first threatening notice arrives in the mail, the fear is real. However, when nothing happens, it’s easy to assume the IRS doesn’t really mean it.
Unfortunately, there is no rhyme or reason for IRS collection activity. I have clients that owe millions of dollars and the IRS doesn’t seem to notice. I also have clients who owe less than $15,000 and the IRS slaps a lien on their assets. I can’t answer the age old question of why, I can’t even make up something that is reasonable because to be honest, it makes no sense!
However, things change and the IRS is changing and taxpayers will suffer. Over the past several years the budget for running the IRS has been reduced each year to the detriment of our country’s financial well being. To make matters worse for the IRS, a significant part of their workforce is up for retirement. Congress has finally noticed and is providing funds for the IRS to do what they do best….collect taxes!
The IRS has identified 7.5 millions taxpayers with a filing requirement as non-filers. In addition to the non-filers, 14 million taxpayers owe the IRS and are in some form of collection status. The IRS has identified regions across the nation that are under served due to a lack of IRS presence. Therefore, they have created a program to address this until they are able to hire and train new staff. This program is referred to as ROCS: Revenue Officer Compliance Sweep. In case you’re wondering, anytime the IRS uses the word sweep…it’s NOT GOOD!
Under the ROCS program, teams of Revenue Officers (ROs) are making their way across the country. Recently, Arkansas was a lucky participant in the ROCS event sending several ROs to my office. The sweep seems to be focusing primarily on small business owners that owe payroll taxes. Unfortunately, 75% of all taxes paid in are through employers and is the backbone of our country’s bank account. The IRS is now making a list of taxpayers and enforcement is coming. If you’re looking for a time to get right with the IRS, now’s the time. It’s almost the new year, why not start 2020 off on the right foot?
Contact my office (501-725-2626) or schedule a free consultation if you have unfiled tax returns or owe the IRS and can’t pay. Don’t wait until your wages are garnished or your bank account has been cleaned out. Complete my tax relief assessment to get started.
Hang in there, Alissa