THE PROBLEM
- The IRS may levy (seize) assets such as wages, bank accounts, Social Security benefits, and retirement income. The IRS also may seize your property (including your car, boat, or real estate) and sell the property to satisfy the tax debt. In addition, any future federal tax refunds or state income tax refunds that you're due may be seized and applied to your federal tax liability.
- The IRS processing time for written correspondence is an additional delay directly affecting taxpayers. From January through May 21, 2022, the IRS processed 5 million taxpayer responses to notices. Processing time for written correspondence was an average of 251 days, which is over eight months. Considering return processing delays and correspondence processing delays, taxpayers are likely waiting over a year to get issues resolved regarding tax refunds. Tax professionals also struggle to speak with the IRS by telephone to resolve client issues. In 2022, only about one in ten phone calls reach an IRS representative.