Is the IRS Shutdown?

The American Society of Tax Problem Solvers solicited the below information directly from the IRS and the short answer is no, they are not closed. Generally, the IRS is not conducting any in-person meetings, however the Taxpayer Advocate Office and the Automated Collections System are still working. Although certain divisions are closed, the IRS remains open and is performing its duties. Regular processing times may be slower than normal as more of their employees are working remotely and are unable to conduct person-to-person business. Field examinations are suspended, although the examination may continue to take place remotely if possible.

 

Do I need to be worried about the IRS placing a lien or levy on my property?

As part of the IRS’ People First Initiative, they have stated they will not issue any new notices of federal tax lien or levies, except in extreme circumstances. An extreme circumstance would be if the statute of limitations was about to expire or the taxpayer is putting assets beyond the reach of the Government.

However, interest and penalties continue to accrue on any outstanding tax liability.

 

How do I stop a collection activity when I have lost most of my income?

We at Adam Shay CPA, PLLC have experience communicating with Revenue Officers at the IRS and can help draft correspondence on your behalf to them depending on your particular circumstance. The IRS has stated that they are considering the release of existing levies on a case by case basis, under their existing guidance. Please Note: If your employer is deducting levies from your wages, your employer has a legal obligation to continue to deduct levies until they receive a release of levy document from the IRS.

 

Installment Agreements:

IRS Commissioner Rettig stated that installment agreement payments due between 4/1/2020 through 7/15/2020 are suspended under the IRS’s People First Initiative. If you are currently making monthly installment agreement payments or direct debits from your bank, it is important you contact your bank immediately to suspend those payments. Please note that you will need to inform your bank 2 weeks prior to 7/15/2020 to begin making your direct debit payments again to avoid default once the suspension period has ended.