Why the IRS Shouldn’t Come to Your Door

Why the IRS Shouldn't Come to Your Door

The IRS Changes its Approach: No More Unannounced Home Visits to Collect Taxes

The Internal Revenue Service (IRS) has made a significant shift in its practices by discontinuing the age-old tradition of unannounced home visits to collect unpaid taxes. This decision has been described by IRS Commissioner Danny Werfel as a “common-sense step.” The agency acknowledges that these surprise visits, which have been occurring for many years, not only created anxiety for taxpayers but also raised safety and security concerns.

Previously, revenue officers would conduct tens of thousands of unannounced visits to taxpayers’ homes. However, with the recent change in policy, the number of home visits is expected to drop considerably to just a few hundred per year. The IRS will now issue what it calls a 725-B appointment letter, allowing taxpayers to schedule a face-to-face meeting instead. Unannounced visits will only occur in “extremely limited situations” as determined by the agency.

The decision to discontinue unannounced home visits has been received positively by the National Treasury Employees Union (NTEU), which represents employees in 34 federal agencies and offices. NTEU national president Tony Reardon welcomed the change, emphasizing the importance of protecting IRS employees who have faced increasing dangers and inflammatory rhetoric about the agency.

The Concerns and Context Behind the Policy Change

Unannounced home visits by IRS agents have recently gained attention due to rising concerns about safety and scams. Enforcement agents have frequently faced assault while conducting these visits, and there have been reports of scammers falsely claiming to be IRS agents. The allocation of $80 billion to the IRS through the Inflation Reduction Act heightened public fears about an army of IRS agents coming to seize tax dollars from middle-income workers.

Although some of the funds allocated to the IRS have been withdrawn, these fears surrounding the agency have had a lasting impact on its ability to conduct unannounced tax collection visits. In the past, these visits were sometimes effective in collecting tax debt or establishing communication with taxpayers. However, the IRS now aims to prioritize safety for its agents and reduce confusion for taxpayers dealing with scammers and inaccurate information.

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The decision to discontinue unannounced home visits is part of a broader “transformation effort” at the IRS. The agency intends to focus on providing improved service, modernization, and tax compliance for high-income taxpayers.

Occasions When Unannounced Visits May Still Occur

Under the new policy, taxpayers with significant unpaid tax bills or unfiled returns will have the opportunity to schedule a meeting with an IRS revenue officer through an appointment letter. However, there will still be rare instances where unannounced visits can take place. These situations include serving summonses and subpoenas as well as sensitive enforcement activities involving asset seizures, especially when there is a risk of hiding assets from the government.

The IRS plans to provide updated guidance on this issue in the coming months. In the meantime, if you have concerns about unpaid tax debt or multiple unfiled tax returns, it is advisable to consult a trusted tax professional who can guide you on the best course of action to resolve the situation.

Overall, the IRS’s decision to eliminate unannounced home visits signifies a significant shift in their approach towards ensuring safety, reducing anxiety for taxpayers, and deterring scams. By focusing on improved service, the agency aims to improve its relationship with taxpayers and provide a more streamlined and efficient tax collection process.

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