This should have been as predictable as the proverbial “three-guys-walk-into-a-bar” joke.
I’m telling you straight up that I don’t know whether to laugh, or scream.
See, here’s the deal: if you are behind on taxes beyond a certain amount of time the IRS has a notice called CP504 they like to mail to people.
They have the ominous title “Notice of Intent to Levy.” Because that’s exactly what they are.
If you don’t make some kind of response to this ugly bit of business within 30 days your federal “gummint” has the right by law to seize your property, and attach any gain from its sale.
Okay, so that’s actually more or less par for the course. A way of life, that I see quite often.
If you didn’t know that, it probably sounds like it sucks a lot. And it does. But that’s our IRS for ya.
A big part of what I do is to help people that get these letters.
Well, guess what?
The IRS is backlogged.
No joke.
So much so, they’re having problems processing tax returns. And they’re now admitting it out loud, in public.
You see, it all started when they sent most of a 89,000 person workforce home during the height of the pandemic back in mid-2020.
Mail was getting so backed up at the receiving stations that they were just writing the date the sacks came in on the side of the large bags with a sharpie.
How do I know this? I have to call the IRS and talk to revenue officers frequently in the day-to-day of my business.
Including responding to the ugly sphincter-tightening #10 IRS envelops with their tidings of gloom and despair.
The dreaded CP504, and its sister notices as well.
They TOLD me this was happening. Quite often from home, with a dog barking in the background.
The mail was backing up, people weren’t able to get through on the phone, powers-of-attorney applications and S Corporation elections taking months when they took weeks before.
It’s been a real shit-show, folks.
Oh, and let’s not forget about the fact that the U.S. (Ultimate Sugardaddy) decided to enlist the IRS as its agency for dispensing billions in stimulus payments the last two years, and advance child tax credit payments in 2021.
I’m not bitching about the money so much as the vast amounts of logistical time that had to take away from their usual business of “helping taxpayers.”
You put enough pressure and stress on a system, and sooner or later it’s going to crack on you.
Or implode.
Now, with all that for background context, are you ready for the part that makes me feel like screaming?
They’re going to call a hiatus on this mail for the time being until they’re in a better position to handle it again!
I’m not making this up. Chuck Rettig, the Director of the IRS said so publicly, and they’re also trying without a lot of success to hire an additional 5,000 positions to help with the backlog.
But hey, you know what?
I feel a lot better now. Thanks for letting me vent.
Let’s do something here, okay? Don’t get carried away and look at this as an opportunity to procrastinate.
Because sooner or later the big data monster will catch up to your past tax debt, and they WILL tack on interest and penalties.
Because they say they HAVE to. It’s the law, after all.
Get pissed if you want to, but you elect these people. That’s Congress I’m referring to, of course.
In the process of creating a more profitable business one of the things we can do is to not let our tax liability situations get out of control.
We can still get power of attorney in for our people, and though it takes over a month sometimes that is at least faster than they’re processing tax returns or other paperwork.
Long story short: we can find out what they think you owe, and we can get those ugly liens lifted if they’re under a certain amount.
Don’t wait for them to reach out and touch you. They’re not going to for a while it seems like.
But you’ll still owe the money when they finally scoop their poop back into a group.
Don’t let it catch you flat-footed.
We can help. Let us know how, and let’s talk.
And hey…don’t forget to get your flowers for Valentine’s Day tomorrow, okay?
Talk to you soon!