Are Tax Collectors Your Friends?

The Wall Street Journal has an article this morning here on tax collectors' use of various "friend" sites to gather information to assist in tax collection. The anecdotal instances discussed involved state tax collection, but "An Internal Revenue Service spokesman declined to say whether its agents use social-networking sites to pursue delinquent taxes or assist audits."

Ask IRS For A Closing Letter

Clients will often ask for something in writing from the IRS that their collection case has been closed. The IRS has now issued a procedure for taxpayers to receive letters when their collection case is closed. This letter will be helpful and reassuring to the taxpayer when the IRS has classified a case as currently non collectible. See the IRS Memorandum with more detail.