The IRS Will be More Active with Collections 2021
Economic recovery and a ‘new normal’ will also mean an increase in IRS penalties and collections – will you be targeted?
In April, unemployment hit almost 15%, and between March to June, nearly 50 million Americans filed for unemployment benefits. However, several projections point to a recovery in 2021.
Authorities are forecasting that businesses and public places will reopen, curbing joblessness. Nevertheless, economic recovery will directly lead to an increase in IRS collections.
Why the Increase in Collection Activity – A Look Inside the IRS
Not only did businesses temporarily close, the IRS experienced a shutdown – putting them far behind schedule.
After reopening, IRS employees discovered a backlog of almost 11 million pieces of unanswered letters and mail. To make matters worse, the IRS was then required to send out millions of stimulus checks.
The IRS is not yet working at full capacity, but by 2021, they are hopeful that operations will return to normal. When that time comes, they will be focusing all their efforts on catching up on audits, misfiles, and letters.
Will You be Targeted by IRS Collections in 2021?
The best way to know if you’re going to be targeted by the IRS is if you owe back taxes, didn’t file past tax returns or misrepresented yourself in past tax returns.
Should that be the case, you may be susceptible to IRS collection letters and penalties such as wage garnishments. Likewise, in the absence of nation-wide distress, it will be significantly harder to negotiate with the IRS.
Even if you haven’t received an IRS letter yet, know that one is imminent. Don’t wait until your returns or wages are garnished! Take our brief Tax Relief Survey now to see if you are eligible for protection from the IRS before they return to full operations.
See if you qualify for the Fresh Start Program today!
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- Answer a few questions about your finances
- Qualify and be presented with a resolution
- Enroll in Fresh Start
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