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.

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.

International TAS taxpayers can now call one phone number regardless of their location.

If you paid a day care center, a qualifying relative, or other qualifying care provider to care for your child or other qualifying individual so that you and/or your spouse could work or look for work, you may be eligible to claim the Child and Dependent Care Credit on your 2021 tax return.

Taxpayer pays balance in full on their tax account as requested by the IRS per letters or notices received. Taxpayer requests refund or abatement for interest, penalties, overpaid tax and/or additional tax.

National Taxpayer Advocate Erin M. Collins joined Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel at the IRS facility in McLean, Virginia, to discuss modernizing IRS technology and the launch of a paperless processing initiative.

As discussed in Part One, over one million taxpayers living in a disaster area filed their returns early with a balance due, expecting to make a timely payment by the postponed dates. Unfortunately, for taxpayers covered by a disaster declaration the IRS followed its normal collection procedures and mailed an initial collection notice and demand, Notice CP14, reflecting an incorrect due date. The notice also informed the taxpayers that interest and penalties would accrue after the due date reflected on the front page of the notice. This is wrong for taxpayers covered by disaster declarations because payment is not required prior to August 15 or October 16, depending on the disaster area when the original due dates fall within the postponement period. To remedy the incorrect date, the IRS included a short paragraph on the back of page four of the Notice CP14. However, the additional language did not solve the problem. Instead, it led to confusion and questions.

If you are unable to pay your taxes in full, the IRS has several options that you can consider based on your financial situation.

You have a balance due on your tax account, which you agree that you owe the IRS, but you cannot pay the balance owing due to your current financial situation. If the IRS agrees that you cannot pay both your taxes and your reasonable living expenses, the IRS may place your tax account in currently not collectible (CNC) status.

Due process requires that matters be resolved according to established rules and principles and that taxpayers be treated fairly. The international information return (IIR) penalty regime under IRC Chapter 61, Subchapter A, Part III, Subpart A does not adhere to this fundamental mandate. Now is the time for Congress to fix this broken system by providing a clear path for implementation of these penalties. This fix, which would provide much-needed clarity and finality, will require legislation.

Collegiate athletics is a competitive and popular multibillion dollar business industry. With television rights deals, conference realignment, recruitment, and much more, collegiate athletics garner significant media coverage. One topic receiving significant recent attention is the area of Name, Image, and Likeness (NIL) agreements, which allow student-athletes to financially benefit from their NIL. Because of the growing influence of student-athletes as celebrities in social media and their communities, the attention surrounding NIL is not surprising. NIL opportunities have provided new revenue sources for student-athletes that, in some instances, may reach significant sums according to some media outlet rankings of the highest estimated financial value of student-athlete NIL agreements. Due to the potential tax consequences, student-athletes should exercise appropriate due diligence before entering into NIL agreements. It is crucial to follow relevant IRS guidance on how to report and pay taxes on NIL income.