As we have alluded to on our blog all year long, IRS Collections is not super predictable right now. The IRS certainly sends out a lot of Notice of Intent to Levy letters but doesn't always follow through on levies. But that can change pretty fast as the IRS can move staffing from one section to another at any time. Tax lien filing is also an engine that keeps on going with real world consequences for property owners. One new phenomenon is the restriction of passport renewals for folks who owe taxes. While passport "confiscation" doesn't seem to be happening, people can be prevented from "renewing" their passports if they haven't worked out an installment agreement or submitted an Offer in Compromise on their back taxes.
Not being exposed to levies is a blessing, but one really should take advantage of this easier collection climate by paying one's current taxes above all else to prevent new liabilities from being added to your case. Also it's an excellent time, if you meet the criteria, to file an Offer in Compromise before the IRS heats up.
