After a long decline in IRS enforcement and a punishing shutdown, looks like the IRS is finally getting it's legs. The current administration is asking for an increase of $200 million and $15 billion over the next 10 years to strengthen IRS enforcement.
What should you a non filer or ower of back taxes expect?
* Substitute for Returns. The IRS will likely start ramping up Substitute for Returns (SFRs)...whereas they file your tax return for you without deductions to get your attention, then collect the debt if you don't send in a corrected return. WATAX researches client's records to get ahead of potential SFRs by filing the minimum returns necessary (usually 2013 to 2018).
*More Revenue Officers. $250,000 plus debts or egregious non-filing situations will get more scrutiny from Revenue Officers who are assigned their cases in your local area. Be prepared to give full financial disclosure and to file returns to bring yourself into compliance.
*Offers in Compromise (OIC) will still be key to resolution. If you can demonstrate an inability to pay back what you owe before your last debt expires - you should definitely do an OIC on what you owe.