Bloomberg Tax
March 17, 2020, 9:09 PM

IRS Stopping Some Tax Enforcement Action Amid Virus Spread

Allyson Versprille
Allyson Versprille
Reporter

The IRS will stop some enforcement actions, including certain levies and collection notices, until further notice in response to the Covid-19 outbreak, according to an alert sent to employees Tuesday.

Effective immediately, the IRS’s automated collection system will stop all levies and notices, according to the alert, which was seen by Bloomberg Tax. The only exception is LP68 Notices, which notify taxpayers a levy has been released and that they no longer need to turn over money or property to pay back taxes.

  • The IRS didn’t return a request for comment.
  • The IRS uses the automated collection system to send notices demanding payment from delinquent taxpayers and to take collection actions, including levying wages and bank account funds and filing federal tax liens.
  • Easing enforcement action is the latest example of steps the agency is taking to address the virus pandemic. The IRS has also expanded its employees’ ability to work remotely, and the Treasury Department has announced it will allow taxpayers to defer tax payments with no penalties or interest.

To contact the reporter on this story: Allyson Versprille in Washington at aversprille@bloombergtax.com

To contact the editors responsible for this story: Patrick Ambrosio at pambrosio@bloombergtax.com; Colleen Murphy at cmurphy@bloombergtax.com