Preparing and filing tax returns can be stressful and confusing, especially if your financial situation has changed or you are filing for the first time. The good news is that free resources are available to help you timely and accurately meet your filing requirements. Taxpayers can receive assistance through the Volunteer Income Tax Assistance (VITA), Tax Counseling for the Elderly (TCE), Free File, and MilTax programs. Taxpayers may also seek IRS assistance electronically using online accounts or the Interactive Tax Assistant (ITA), or in person at a Taxpayer Assistance Center (TAC). Each method of assistance, as discussed below, has different qualifications and features, and taxpayers should look at each one before deciding which is best for them.

Earlier this month, the IRS posted information on IRS.gov that will come as welcome news to persons seeking to become “Acceptance Agents” for purposes of assisting individuals who need to obtain an Individual Taxpayer identification Number (ITIN) to file a tax return or be claimed as a dependent on a tax return.  This development will also benefit individuals who wish to use an “Acceptance Agent.”  The IRS did not issue a press release to publicize the development, so I want to take this opportunity to highlight it.

During the 2021 filing season, the IRS had to temporarily scale back operations while also assuming new responsibilities in implementing important economic relief measures passed by Congress during the pandemic (i.e., delivering Economic Impact Payments and advance payments of the Child Tax Credit).  Many taxpayers have experienced frustration caused by the high volume of manually processed returns, the limited information available about the status of their return processing, the refund delays, and the difficulty reaching IRS employees.  Many of these challenges are a direct result of the impact the pandemic has had on both the IRS workforce and taxpayers.  To illustrate this impact, between January and August 2021:

• The IRS received an unprecedented high volume of calls (about 199 million);
• Manually reviewed 11 times more tax returns this year (11 million) to correct errors and gather missing information from taxpayers; and
• Had over 1.7 billion visits to gov.

Notice of Intent to Levy and Notice of Your Right to a Hearing is mailed to taxpayers to notify them of their unpaid taxes and that the IRS intends to levy to collect the amount owed, if it is not paid within 30 days.

Taxpayer receives a notice or letter from the IRS and either chooses to respond to the notice or letter by paying their tax balance in full or pursues a payment option; or the taxpayer chooses not to respond.

You submitted a written request for a Collection Due Process (CDP)equivalent hearing, most likely by using the Form 12153, Request for Collection Due Process or Equivalent Hearing. Appeals made a decision and you agreed with the decision.

You received a notice from the IRS about your balance due resulting from an audit or the IRS creating a return for you because you didn’t file a return.

Letter 3219-C is mailed to taxpayers informing them that the IRS is proposing a deficiency or disallowing a claim for refund or a credit for a subsequent period’s estimated tax.

Letter 3219, Notice of Deficiency (also referred to as 90-Day Letter), is a taxpayer’s legal notice that the IRS is proposing a deficiency.

Letter 4800C is mailed to taxpayers informing them that the IRS is proposing a deficiency or disallowing a claim for refund or a credit for a subsequent period’s estimated tax.

Letter 4800C is mailed to taxpayers informing them that the IRS is proposing a deficiency or disallowing a claim for refund or a credit for a subsequent period’s estimated tax. Credits claimed, income tax withholding, or business expenses need verified before your refund will be released or applied to next year’s Estimated tax.

Notice CP40, Assigning Delinquent Account to a Private Collection Agency. In 2017, as required by law, the Internal Revenue Service started using private collection agencies (PCAs) to collect certain overdue federal tax debts. If your federal tax debt is assigned to a PCA, you will receive letters from both the IRS and the agency. These letters contain important information for when you are contacted by the collection agency, so make sure to put them in a safe place.

In 2017, as required by law, the Internal Revenue Service started using private collection agencies (PCAs) to collect certain overdue federal tax debts. If your federal tax debt is assigned to a PCA, you will receive letters from both the IRS and the agency. These letters contain important information for when you are contacted by the collection agency, so make sure to put them in a safe place.

Taxpayer receives a notice or letter from the IRS and either chooses to respond to the notice or letter by paying their tax balance in full and/or filing missing tax returns; or pursuing a payment option; or the taxpayer chooses not to respond or choose any collection alternatives.