TIGTA Reviewed IRS Levies and Found That The IRS Generally Complied With Legal And Administrative Requirements.

TIGTA reviewed levies issued for over 2 million taxpayers by IRS Collection functions during the period October 1, 2019, through September 30, 2020, and found that the IRS generally complied with legal and administrative requirements. 

However, There Were Some Instances of Noncompliance In Which An Estimated 1,306 Taxpayers’ Rights Were Potentially Violated And
1,186 Taxpayers Were Potentially Burdened.

TIGTA’s review of levies issued by the Automated Levy Programs found:

·         Federal Payment Levy Program – from a population of 1,018,356 taxpayers: 9 taxpayers were not notified of their CDP rights and an estimated 33 taxpayers were levied while a CDP hearing was pending. From a population of 1,944 taxpayers with disqualified employment tax levies and 1,034 taxpayers with Federal contractor levies issued through the Federal Payment Levy Program, 36 taxpayers were not notified of their CDP rights and 18 taxpayers were not timely notified of their CDP rights.

·         State Income Tax Levy Program – from a population of 367,293 taxpayers, 28 taxpayers were not notified of their CDP rights and an estimated 1,186 taxpayers were potentially burdened when they did not timely receive their post-levy CDP rights. An estimated 34 taxpayers did not receive a new CDP notice after an additional tax assessment was made.

·         Municipal Tax Levy Program – from a population of 423,075 taxpayers, an estimated 528 taxpayers did not receive a new CDP notice after an additional tax assessment was made. An estimated 171 taxpayers were levied while a CDP hearing was pending.

From a population of 180,620 taxpayers levied through the Automated Collection System, TIGTA found that 81 taxpayers were not notified of their CDP rights and 7 taxpayers were not timely notified of their CDP rights. Also, 190 taxpayers did not receive a new CDP notice after an additional tax assessment was made, and 46 taxpayers were levied while a CDP hearing was  pending.

From a population of 35,978 taxpayers levied by revenue officers through the Integrated Collection System, TIGTA found that 50 taxpayers were not notified of their CDP rights and 23 taxpayers were not timely notified of their CDP rights. Also, 18 taxpayers did not receive a new CDP notice after an additional tax assessment was made, and 32 taxpayers were levied while a CDP hearing was pending.

TIGTA made eight recommendations to help improve the proper issuance of levies by the IRS. The IRS agreed with seven recommendations. The IRS disagreed with one recommendation to ensure that post-levy CDP notices are    issued to taxpayers within 30 days of receipt of levy proceeds, but plans to review reports every 60 days to identify accounts for which a post-levy CDP notice was not sent within a reasonable period and promptly address those situations.

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