The IRS first reported back in a memo on June 15, 2021 that they were going to resume the IRS Collection Process. Well, that date is now upon us. August 15th is the key date to mark on your calendar. For the last two months, the IRS has generated thousands of warning letters stating they are coming, and now they actually will be levying, garnishing, and seizing property. Are you prepared?
One of the main operations of the IRS is to collect taxes, or revenue. The easiest way to do this is to have people withhold funds from their income to the IRS and pay in full by the time they file their tax return. However, millions of dollars in revenue are also gathered through the IRS Collection Process. When Covid struck early last year, the IRS put a halt to collection enforcement and it hasn’t restarted yet. Until now! With all the government spending, the IRS has its hands full in finding ways to help pay for everything. Luckily the IRS uses the Automated Collection System, or ACS, as its main IRS Collection Process tool.
Automated Collection Systems: Liens
ACS is like it sounds, automated. The computer uses dates and statuses to automatically move collections forward. One of the IRS favorite tools is lien filings. ACS will file a tax lien in personam and in rem on a tax debtor if that person is not in a resolution status or pending status.
Automated Collection Systems: Wage Garnishments
Another automated system is wage garnishment. The computer system will automatically send out wage garnishment notifications to the last known work location demanding a 15-25% wage levy against that tax debtor’s income.
Automated Collection Systems: Bank Levies
Bank levies are also automated and sent out to any and all known bank accounts of the tax debtor. If there are funds in the account, it requires the banks to pull all funds in a trust account to hold for 21 days until releasing them to the IRS.
August 15, 2021 is a Sunday. So that means Monday the 16th is going to be the day of action. If you already don’t like Mondays, this isn’t going to help. BUT, THERE IS NO NEED TO BE COLLECTED UPON. If you do owe tax debt and are not yet in a resolution program, give us a call 800-822-4122 or go tohttps://taxdebtservices.com/doiqualify/, we can help.