Attorneys
Worcester
Worcester
The Guaranty Building
370 Main Street, 12th Floor
Worcester, MA 01608
Framingham
Framingham
The Meadows
161 Worcester Road, Suite 501
Framingham, MA 01701
Boston
Boston
12 Post Office Square, 6th Floor
Boston, MA 02109
Providence
Providence
1 Richmond Square, Suite 303N
Providence, RI 02906
Cape Cod
Cape Cod
1597 Falmouth Road
Centerville, MA 02632
Hudson
Hudson
69 Main Street
Hudson, MA 01749
New Bedford
New Bedford
651 Orchard Street, Suite 107
New Bedford, MA 02744
Medfield
Medfield
Olde Medfield Square
266 Main Street, Bldg. 2, Suite 15A
Medfield, MA 02052
Practice Areas
Niche industries
Open detail
Cannabis & Breweries
Cannabis & Breweries
Open detail
Closely Held and Family-Owned Businesses
Closely Held and Family-Owned Businesses
Open detail
Condominiums
Condominiums
Open detail
Medical & Dental Practices
Medical & Dental Practices
Open detail
Private Foundations
Private Foundations
Open detail
Real Estate Developers
Real Estate Developers
Open detail
Restaurants
Restaurants
Open detail
All Industries
  • Multiple Dates

Estate Planning Webinar

Please join Fletcher Tilton Tax Attorney and Certified Elder Law Attorney Michael T. Lahti for this informative webinar discussing the important topics of Estate Planning and Elder Law.  Details for the next upcoming date.

SHOW ALL UPCOMING DATES

Learn More
Learn More
Learn More
Learn More
  • Wed. Nov. 10, 2021
  • 12:00-1:30 p.m.
 

The Arc of Massachusetts 2021-22 Transition Conference

Learn More

Learn More

View Past Seminars

Firm News
IRS To Resume Collections June 15, 2021

IRS To Resume Collections June 15, 2021

Featuring Michael P. Duffy on June 14, 2021
June 14, 2021

Like many government agencies, the IRS was severely impacted by COVID-19. In addition to shutting down various service centers and extending filing deadlines, the IRS suspended most collections and enforcement efforts in late March 2020. For taxpayers with back taxes, the pause from the end of 2020 until now has no doubt been welcome.

As the country continues to recover from the pandemic, however, the IRS is preparing to resume normal collections operations on millions of accounts. Recent public statements by senior IRS personnel indicate that the target reopening date for most collection initiatives is June 15, 2021.

If you owe back taxes, there is a strong chance in the next week you will receive a notice threatening potential liens and levies. But unlike automated notices you may have received earlier in the year, these notices may actually impact your legal rights if you do not act immediately.

When You Need to Act

When the IRS records a tax lien, it attaches to property you own and puts third parties on notice of the debt. Obviously, this can cause embarrassment. A levy is worse than a tax lien; when the IRS levies a taxpayer, it will contact a third-party holding property belonging to the taxpayer and order that the third party instead pay the government. The IRS can levy wages, benefits, and even bank accounts. Because these enforcement actions can cause serious harm to taxpayers, the IRS has to follow certain procedures when it places liens and levies on taxpayer assets.

When the IRS wants to proceed with an initial levy or lien, it is required to give the taxpayer a right to request something called a Collection Due Process hearing. The hearing gives a taxpayer the right to work out a plan to resolve the debt, and in some cases the right to challenge whether the tax is actually due or not. When taxpayers file a Collection Due Process hearing request, the pending lien or levy action is suspended until the hearing occurs.

When a taxpayer receives a true “final” notice of lien or levy, they will have thirty days to request a Collection Due Process hearing. This is a legal deadline that cannot be extended and is the only shot a taxpayer has at getting a Collection Due Process hearing.

What is usually not explained to taxpayers is the fact that they normally will receive several different letters and notices from the IRS threatening liens and levies before receiving a true final notice. For example, in March and April this year, taxpayers may have received something called a CP504 notice that featured the following subject line:

“Notice of Intent to Levy. Intent to seize your property or rights to property. Amount due immediately $*****”

The CP504 also includes a payment coupon, usually reflecting the entire amount due. The CP504 will not mention a taxpayer’s rights to request a Collection Due Process hearing because the IRS takes the position that it is not a final notice. Effectively, the CP504 notice is just an assertive reminder that the taxpayer owes the government money; this notice does not permit the IRS to actually file a lien or levy if the taxpayer doesn’t pay the tax in full or otherwise respond.

After a taxpayer receives a few preliminary collection notices, they will eventually receive an actual final notice of intent to levy or notice of federal tax lien. For example, the taxpayer may receive something called a Letter 11, which includes the following subject line:

“Notice of Intent to Levy and Notice of Your Right to a Hearing. Intent to seize your property or rights to property. Amount due immediately $*****”
 
The Letter 11 and CP504 look almost identical, but the Letter 11 actually gives a taxpayer their right to file a Collection Due Process hearing because it is considered a final notice. Typically, the text informing the taxpayer of their right to request a hearing is buried on the second or third page in the fine print.

On June 15, 2021, the IRS will resume sending out true final collection notices such as Letter 11. Enforcement actions can begin approximately forty-five days after the receipt of one of these final notices, as the notice gives the taxpayer thirty days to file for a Collection Due Process hearing, and the IRS needs an additional two weeks to process responses by mail. Consequently, if you’ve recently received notices from the IRS concerning your liability, you need to be aware that the next one to arrive may be your last chance to stop collections and protect your assets.

Other Initiatives

In addition to resuming normal collections actions, the IRS is also preparing to aggressively target certain compliance areas. The IRS has publicly disclosed four major enforcement initiatives over the past two months that it intends to roll out:
  • Operation HiDef/Surround Sound – Program to target taxpayers with over $100,000 of income reported by third parties, but who have not filed income tax returns.
  • Operation Liquidation – Program to use data analytics to match foreign and domestic bank records obtained through FATCA with bankruptcy filings.
  • Ghost Employer Project – Program to target employers who issue W-2s to employees but do not file copies with the Social Security Administration and do not report payroll activity on Forms 940 and 941.
  • Repatriation Project – Program to use data analytics and FATCA data to locate taxpayer assets and pursue collections actions in foreign countries.
The new programs are aimed at high-dollar tax evasion and criminal matters. They are also coupled with continuing efforts to track income and assets involved with cryptocurrency markets. Taxpayers who may be the subject of these programs should contact an attorney immediately.

What We Can Do

An experienced tax attorney can help you understand where you are in the collections process, what your options are, and what other actions you need to take to protect yourself. If you owe back taxes, our attorneys can help.
Please enter your name.
Please enter your email address.
Please enter your message.
Please solve the above multiplication.

You must attach a copy of the PDF application form linked above. You may add pages to the application, but the name of the file must remain the same.

Please attach Job_Application_Form.pdf
Subscribe to our newsletter.
First name is required.
Email is required.
Email does not match.
Publications
Please solve the above.
reCAPTCHA is mandatory
Welcome to fletcher tilton Online Invoice Payment Center.
Card holders name is required.
Please enter invoice number.
Please enter amount to be paid.
Please enter valid card number.
CCV code is required.
/
Please select expiration date.
Please enter your street address.
Please enter your city.
Please enter your state Code.
Please enter your postal code.
Please enter your contact number.
Please enter your email address.
Welcome to fletcher tilton Online Retainer Funding Center.
Card holders name is required.
Please enter a client number.
Please enter amount to be paid.
Please enter valid card number.
CCV code is required.
/
Please select expiration date.
Please enter your street address.
Please enter your city.
Please enter your state Code.
Please enter your postal code.
Please enter your contact number.
Please enter your email address.
Welcome to fletcher tilton Online Immigration Pre-Payment Center.
Bank account type is required.
Please enter a valid name.
Please enter amount to be paid.
Please enter client number.
Bank routing number is required.
Bank routing did not match.
Bank account number is required.
Bank account number did not match.
Please enter your street address.
Please enter your city.
Please enter your state Code.
Please enter your postal code.
Please enter your contact number.
Please enter your email address.
Welcome to fletcher tilton Online PAY BY CHECK.
Bank account type is required.
Please enter a valid name.
Please enter amount to be paid.
Please enter invoice number.
Bank routing number is required.
Bank routing did not match.
Bank account number is required.
Bank account number did not match.
Please enter your street address.
Please enter your city.
Please enter your state Code.
Please enter your postal code.
Please enter your contact number.
Please enter your email address.