Field Collection Operations Employment Tax Compliance Efforts & Current Collection Hot Topics

Transcription

1 Field Collection Operations Employment Tax Compliance Efforts & Current Collection Hot Topics Regina Malisham IRS Stakeholder Liaison FY 2016 Field Collection Operations 2 FY 2016 Field Collection Operations 59 $59.4 Billion: Amounts due from Forms 941 unpaid, as of June 30, 2016, Source: IRS CFO 3 1

2 FY 2016 Field Collection Operations Over Two-Thirds Withheld by Employers 4 FY 2016 Field Collection Operations Operating a business is challenging, those not paying taxes withheld in trust gain an unfair advantage over compliant businesses. 5 Current Hot Topics Impersonation Concerns Hiring Private Debt Collection Passport Legislation 6 2

3 IRS Collection Process, the Basics Collection Case Prerequisites Current and future tax compliance All required returns filed Proper withholding Estimated tax payments made Business tax deposits made Collection Operations Campus Collection Accounts Management Automated Collection System ACS call sites Field Collection Revenue Officers 3

4 Collection Information Statements Wage earners and self-employed, Forms 433-A, 433-A (OIC) & 433-F Businesses Forms 433-B & 433-B (OIC) Resolving Collection Cases Prerequisites met and Collection Information Statement provided? Analyze payment options Borrowing or asset liquidation Installment Agreement (not streamlined) Offer in Compromise Temporary suspension Collection Appeal Rights Publication 1660, Collection Appeal Rights Collection Due Process Hearing Collection Appeals Program 4

5 The Collection Compass: Plotting a Course to Resolution Communicating with Collection Case routing and assignment Field visits individuals and businesses E-Fax information Compliance Assessments Individuals Automated Substitute for Return Businesses 6020(b) 5

6 Employment Tax Liabilities Trust Fund Recovery Penalty Form 2750 TFRP statute extension In-Business Trust Fund Express Installment Agreements Third party payers Penalty Assessments Reasonable cause Determining relief First time abatement Installment Agreements Terms and conditions Reasons for termination Defaulted: What now? 6

7 Knowing Collection Topics Early Interaction Initiative Federal tax deposit alerts Online Payment Agreement Made easier, usage increasing Offer in Compromise Tips and tools Topics (continued) Final tax issues Resolving tax issues for the deceased Communicating with Collection Calls to PPS and ACS Fixing America s Surface Transportation Act Denial and revocation of passports Private debt collection 7

8 Early Interaction Initiative What is it? Policies and procedures Goals How does it work? The right treatment At the right time For the right employer Online Payment Agreements Who can use it Where to find the application Recent improvements Increased usage Online Payment Agreements 8

9 Offer in Compromise Updates Revised forms and instructions Tips for preparing and submitting application OIC Pre-Qualifier Tool Procedural Change in Cases of Unfiled Returns Old procedure Return the application, user fee, and initial payment New procedure effective March 27, 2017 Return the application and user fee Apply required initial payment against the balance due Final Tax Issues Final Form 1040 Tax Return for Estates and Trusts Form 1041 Duties of an estate administrator Getting info/help from IRS 9

10 Passport Denial/Revocation Legislation review Begin implementation as soon as feasible/effectively as possible Coordinating aspects Work with Department of State Information technology Private Collection Agencies Assign initial cases to agencies in the spring of Covers tax debts owed that are currently not being worked by the IRS. Agencies will work with the taxpayer and the representative to resolve the unpaid account. Collection User Fees 10

11 Collection Program User Fees User fees General information Proposed 2017 user fee changes Installment Agreements (payment plans) Offers in Compromise Installment Agreement Fees IA User Fee Category Fee as of Jan Low Income taxpayers $43 Manual application without direct $225 debit payments Online application without direct $149 debit Manual application with direct $107 debit Online application with direct debit $31 Restructured/Reinstated IA $89 Restructured/Reinstated IA Low Income (new fee) $43 Offer in Compromise Fee Current fee is $186 Proposed new fee was $300 Update On hold, fee remains $186 Next review

12 Federal Tax Liens Other Lien Certificates Discharge Subordination Nonattachment Withdrawal Certificate of Discharge Specific property discharged from the lien Publication 783, How to Apply for Certificate of Discharge Video: Selling or Refinancing When There is a Lien 12

13 Certificate of Subordination Makes Federal Tax Lien secondary Pub 784, How to Apply for Certificate of Subordination Video: Selling or Refinancing When There is a Lien Certificate of Non-Attachment Pub 1024, How to Prepare Application for Certificate of Nonattachment Lien Notice Withdrawal Certificate Circumstances Notice filed too soon or not in accordance with procedures Taxpayer enters payment agreement Will facilitate/aid collection Best interests of taxpayer and government 13

14 Withdrawal Certificate cont. Additional circumstances Fresh Start Form 12277, Application for Withdrawal Resources IRS.gov Keywords Lien Collection Procedures IRSVideos.gov Keywords Lien Owe Taxes Pub. 594, The IRS Collection Process Beyond Early Interaction for Non- Compliant Employers Levy of bank accounts, receivables Seizure of property Disqualified Employment Tax Levy (DETL) Trust Fund Recovery Penalty (IRC 6672) Suits for Injunctive Relief Criminal Referrals 42 14

15 Summary Prerequisites Understand the process Resolve ASAP Provide financial information when required Q&A Session Jon Say Territory Manager South East Coast Territory Fort Worth, TX 44 15