Federal Tax Deposit Alerts (FTD Alerts) bring to light an employer’s declining payroll tax deposits. The goal of the alert was to have the IRS meet with employers, determine the cause of the declining deposits and ensure that the employer maintains compliance. As the IRS budget suffered year after year since 2010, so did the effectiveness of the FTD alert system. The system has relied almost entirely on a mail campaign, but that is about to change.
The IRS recently announced that as a part of its Early Interaction Initiative, Collections “work plans have been adjusted to allow field officials to work more FTD alerts more quickly.” As a result, “The number of cases assigned to Field Collection will increase under the Early Interaction Initiative.” Business taxpayers, especially those with preexisting liabilities should be expecting more surprise knocks from IRS Collections this year. For years, the IRS has employed FTD alerts as a tool to combat accruing employment taxes.
Despite the fledgling FTD Alert program over the past several years, the IRS has been consistent in one message concerning employment tax and that is, “Applying the tax laws with fairness for all requires that the IRS address payroll tax delinquencies as soon as possible.” In light of the IRS’ budget woes, it’s natural to question the sustainability of this plan as well as Collections core functions. Yet, the IRS’ announcement appears to signal that the IRS has a plan in place and is serious about making this work.
It is now more important than ever to get in front of your tax issue sooner rather than later. The last thing you want is to be caught off guard when the IRS comes knocking on your door. Fighting on behalf of taxpayers just like you is what we do every day – make it a point to get in touch with one of our tax experts so that we can begin to evaluate your case, today.
If you’d like to read the IRS announcement in full detail, click here.