An estimated 24,237 taxpayers may have been adversely affected because the Internal Revenue Service did not follow requirements to notify the taxpayers’ representatives of the taxpayers’ rights related to notices of federal tax liens, according to a new report.
The report, from the Treasury Inspector General for Tax Administration, was generally positive and found that in most cases the IRS mailed out the notices about tax liens being filed and the rights of taxpayers to appeal the tax liens. IRS employees also typically followed the correct procedures when a notice could not be delivered by the post office.
TIGTA pointed out that IRS regulations require that taxpayer representatives be provided copies of all correspondence issued to the taxpayer. However, for six of the 36 sample cases that TIGTA audited for its annual review of IRS compliance for which the taxpayer had an authorized representative, the IRS did not notify the taxpayers’ representatives of the NFTL filings. TIGTA estimated that 24,237 taxpayers may have been adversely affected because the IRS did not follow the requirements to notify taxpayer representatives, such as accountants and attorneys, of the taxpayers’ rights related to the tax lien notices.
– IRS Tax Lien Notices Didn’t Reach Taxpayers or Their Representatives (Accounting Today)
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