Sadly, we have all heard stories of people falling victim to financial scams. Scams can take many forms and often harm our most vulnerable citizens. For example, many of us have received phone calls or other types of messages from fraudsters impersonating IRS or law enforcement officials threatening jail time if a fabricated tax debt is not immediately paid. Other scammers convince victims to liquidate their assets and pay them to the scammers, effectively stealing their life’s savings and leaving them with large tax liabilities to boot. Yet another type of scam involves the scammers convincing the victims to take fraudulent positions on their tax returns with the promise of a large tax refund, often under the guise of friendship or assistance. Many of these fraudulent tax schemes are posted to social media and are unfortunately reaching a wide audience.

You have a balance on your tax account which you have not paid and the IRS has filed a public document, the Notice of Federal Tax Lien (NFTL), with the local and/or state authorities to alert creditors that the government has a right to your interests in any current and future property and assets.

Effective July 24, most unannounced visits by revenue officers will stop.

National Taxpayer Advocate Erin M. Collins joins the American Institute of Certified Public Accountants Town Hall Series to discuss pressing issues facing the accounting industry.

I’ve written several blogs discussing how the IRS continues to be mired in processing backlogs following pandemic-related office closures in 2020. But it’s not just unprocessed tax returns piling up. The IRS is also experiencing unprecedented delays in processing Forms 2848, Power of Attorney and Declaration of Representative, and 8821, Tax Information Authorization, (collectively “authorizations,” for practitioners). These forms are required for taxpayers to grant someone either the authority to represent them in IRS matters or otherwise assist them with tax matters. Practitioners cannot assist taxpayers without the proper authorization. The IRS Centralized Authorization File (CAF) units process authorizations allowing a taxpayer’s designated representative(s) or designees to access their clients’ IRS records, receive copies of correspondence, and, pursuant to a Form 2848, perform other duties during representation to resolve or avoid issues with the IRS. With the unusual backlog, the IRS needs to provide specific information on processing delays to manage expectations, reduce frustrations, and decrease the possibility of filing duplicative authorizations.

Your tax return may show you’re due a refund from the IRS. However, if you owe a federal tax debt from a prior tax year, or a debt to another federal agency, or certain debts under state law, the IRS may keep (offset) some or all your tax refund to pay your debt.

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.

Economic Impact Payments (EIPs) are considered advanced payments against a new credit, called the Recovery Rebate Credit (RRC), that can be claimed when you file your 2020 individual tax return. You must file Form 1040 or Form 1040-SR to claim the RRC even if you are normally not required to file a tax return. EIPs were paid in two rounds – one during 2020, and one during early 2021.

In June, the U.S. Supreme Court in Commissioner v. Zuch ruled that the Tax Court lost jurisdiction to determine the underlying liability in a CDP case after the IRS abandoned the levy at issue. The TAS Act provision that would provide the Tax Court with the authority to order refunds and credits in CDP cases could have helped in this situation. For taxpayers in the same situation as Ms. Zuch, the TAS Act provision would allow a continuing Tax Court case and the ability to seek a refund in the same forum rather than requiring the taxpayer to pursue a separate refund claim.