Increased IRS Tax Enforcement

On February 20, 2020, the Internal Revenue Service (“IRS”) announced a new initiative to bring all taxpayers into compliance with their filing and payment obligations. The IRS will be implementing new procedures including personal visits, and the use of data analytics to find taxpayers who are not in compliance with their filing and payment obligations. This would include an increased of IRS tax audits. To promote voluntary compliance with tax laws, the IRS plans to:

(1) increase in the identification and case creation for individual and business non-filers which will allow IRS enforcement officers to go out into the field to contract taxpayers;

(2) institute the Automated Substitute for Return program in which the IRS will prepare tax returns on behalf of non-filing taxpayers; however, these returns are never favorable to the taxpayer;

(3) use automated filing process to enforce employment tax filing requirements;

(4) institute the Delinquent Return Refund Hold program which will hold an individuals refund, if that individual has not filed all necessary tax returns within the last five years.

At this time the IRS is hiring more employees so that it can enforce the federal tax laws. Taxpayers should be aware of their rights when dealing with the IRS. The IRS will continue to follow-up with taxpayers until their obligations are complied with. Taxpayers who are unable to pay may be eligible for an IRS offer in compromise or installment agreement. Taxpayers should ensure they are aware of all of the possibilities to resolve their tax obligations.

As head of the firm’s Tax Practice, Robb Longman has been the Chair of Maryland State Bar Association’s Tax Section and currently serves as the Secretary of the Tax Section of the American Bar Association. Mr. Longman regularly works with IRS tax clients at our firm’s Maryland and DC offices to devise strategies to help them minimize their IRS tax penalties and, if possible, avoid tax disputes. Robb Longman and each tax attorney at Longman & Van Grack works diligently with each of their IRS tax clients regarding IRS tax planning, and estate planning throughout Maryland, DC, Rockville, and Bethesda. Robb Longman works directly with each of his IRS tax clients to lessen the tax burdens and maximize the tax benefits associated with accomplishing their financial goals. If you would like to meet with Mr. Longman regarding an IRS tax problem, call 301-291-5027 to schedule an appointment or speak with Mr. Longman.