After the long pandemic, IRS is looking to step up its Collection Enforcement. Taxpayers can expect to get letters from the IRS about unpaid taxes, unfiled tax returns, crypto currency reporting, etc.
According to National Law Review article, the IRS is responsible for collecting almost 95 percent of total federal revenue through its compliance and collection activities. Current enforcement activities and programs at the IRS include the following:
HiDeF/Operation Surround Sound. These enforcement efforts are geared towards high-income non-filers. Taxpayers that fall within this program have an income of $100,000 or more and have not filed federal income tax returns.
Operation Liquidation. This effort involves the IRS Insolvency Unit. Insolvency is looking into taxpayers that file bankruptcy and matching taxpayer disclosures to FATCA information and other information obtained through data analytics.
Ghost Employer Project. A Ghost Employer is one who issues Forms W-2 to its employees, but who has not filed those forms with the Social Security Administration and has not filed employment tax returns, Form 941 and Form 940, with the IRS. Both the IRS Examination Division and IRS Collection are working these cases and making criminal referrals in these cases.
Repatriation Suits. IRS Collection is using FATCA and data analytics to locate foreign assets held by taxpayers. Once located, they are working with IRS Chief Counsel and the Department of Justice to pursue mutual collection assistance requests with U.S. Treaty Partners.
Cryptocurrency Projects. The message is clear from Darren Guillot. "The IRS knows if you have virtual currency…. Taxpayers need to tell the truth [about their virtual currency]." More information about IRS cryptocurrency enforcement efforts can be found here.
There is always a solution for any IRS (or state) tax problem. If you need help in getting your tax problems resolved, please call us at 480-442-7063 or go online to set up a consultation. You will find additional information here.
Similarly, if you have already received letters from the IRS, and not sure how to proceed, please call us immediately. Many of the IRS letters are time sensitive, and require a timely response.
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