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CORONAVIRUS, TAXES, AND TAX LIABILITIES

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Summary

  • IRS and state tax collection efforts have resumed and are ongoing.
  • Pandemic-era relief has ended, but some COVID-related credits still impact tax accounts.
  • Common tax resolution tools such as Installment Agreements and Offers in Compromise are still available.
  • IRS collection activities continue through both automated systems and assigned Revenue Officers.
  • Taxpayers who act now can often stop enforcement actions and resolve debts affordably.

With the severe economic fallout of the COVID-19 pandemic, many individuals and businesses who owe taxes to the IRS or a state are still feeling the effects. Even though most pandemic-era tax credits and stimulus programs have ended, the consequences of that financial disruption remain. Many taxpayers wonder whether the IRS or state taxing authorities are going to make life more difficult.

Although the IRS’s and state taxing authorities’ responses to the COVID-19 crisis have evolved, much of their collection activity has resumed. Below is key information for people in collections with the IRS or a state. We explain whether you may be eligible for relief, how to avoid unnecessary delays, and what to expect from IRS enforcement going forward.

IRS and State Collection Activity Continues

Revenue Officers, Settlement Officers, and Offer Specialists continue to work cases and pursue collections. Deadlines are still enforced, and the IRS is working with taxpayers and professionals to resolve unpaid taxes.

The IRS Automated Collection System (ACS) continues to generate and mail notices. Although the IRS is making more use of digital communications, in-person contact is still limited in many cases.

For many taxpayers, this is actually a good time to resolve their tax liabilities. If you qualify for a resolution program, there is no need to wait. Delaying action can lead to more penalties, additional interest, and possible enforcement actions like liens or levies.

If you’ve experienced job loss, reduced income, or simply have more time available, it may be an ideal opportunity to address unpaid taxes. Tax liabilities don’t disappear on their own. Tackling them now can prevent more serious problems in the future.

Avoid the IRS Collections Phone Line

According to the National Taxpayer Advocate’s 2024 Annual Report to Congress, the IRS received over 94 million phone calls, but only 29% were answered by a live representative. This ongoing lack of access to live help makes professional representation more critical than ever (IRS.gov).

The IRS Collections 800 number (ACS) remains difficult to reach. Even during non-crisis times, wait times are long, and getting a human representative is often frustrating.

Engaging a tax professional can help. Licensed professionals have access to the IRS Practitioner Priority Service (PPS), which provides faster support. While wait times may still be an issue, the PPS typically allows for quicker resolution than the public phone line.

If your case is assigned to ACS, resolution may take longer—but that doesn’t mean you should delay action. At Fortress Tax Relief, our attorneys prepare and submit proposals with documentation so the IRS can review and approve them once they are ready. This proactive approach often prevents enforcement and keeps your case moving forward.

Opportunity Within the IRS Process

At Fortress Tax Relief, our team of tax attorneys and support staff monitor IRS developments closely. We communicate internally to share updates that affect taxpayers. When we identify changes that might benefit our clients, we act quickly. When we see potential disadvantages, we take steps to minimize them.

Because IRS policies and procedures change, sometimes rapidly, taxpayers represented by experienced professionals are better positioned to take advantage of emerging opportunities.

You May Be Eligible for Relief

While IRS collection efforts remain strong, the Offer in Compromise (OIC) acceptance rate was approximately 21% in FY2024, with only 7,200 of about 33,600 offers accepted

Taxpayers on existing Installment Agreements or accepted Offers in Compromise may still qualify for temporary relief or adjustments to their payment terms, especially if their financial situation has worsened.

The IRS and some state taxing authorities continue to show flexibility in granting deadline extensions or modifying payment terms. If you’re having difficulty submitting documents or making payments, speak with your Revenue Officer—or your tax professional—about potential accommodations.

The IRS has periodically extended deadlines for tax filings and payments. For up-to-date information, refer to your state taxing authority.

How a Tax Resolution Professional Can Help

If you’re struggling to meet household or business expenses while staying current on taxes, a tax resolution professional can help you prioritize. A qualified representative can often:

  • Negotiate a reduction in total tax debt
  • Prevent levies and garnishments
  • Halt accruing penalties through timely intervention
  • Represent you directly with IRS agents

Fortress Tax Relief specializes in helping individuals and businesses with serious tax problems. We understand financial hardship, and our mission is to improve your situation no matter how difficult it may seem.

We have caring and knowledgeable professionals on staff ready to evaluate your case and present options—at no charge.

FAQs

  1. Are IRS collections still active?

    Yes. IRS collections have resumed full operations. Notices, levies, liens, and garnishments are all being used to collect back taxes.

  2. Is there still COVID-related tax relief available?

    While most programs have ended, lingering effects—such as modified payment terms or delayed filings—may still qualify some taxpayers for flexibility. Speak with a tax professional about your situation.

  3. What if I can’t reach anyone at the IRS?

    IRS phone lines, particularly ACS, are hard to reach. Tax professionals can use the IRS Practitioner Priority Service to obtain faster support.

  4. Can I still get an Offer in Compromise or Installment Agreement?

    Yes. These programs are still active. A tax attorney can evaluate your eligibility and guide you through the process.

  5. Why choose Fortress Tax Relief?

    Our clients work with licensed attorneys—not just case managers or sales reps. We offer real legal representation and proven results.

Conclusion

The IRS is actively pursuing unpaid tax debts, and taxpayers who delay addressing their liabilities are at greater risk of enforcement. Although the COVID-19 emergency is behind us, its financial consequences remain for many Americans. Fortunately, tax resolution tools such as Offers in Compromise, Installment Agreements, and Currently Not Collectible status continue to offer relief.

At Fortress Tax Relief, we’re committed to helping you find the best outcome possible. We provide experienced, honest, and results-driven representation nationwide.

If you’re ready to reduce or resolve your tax debt, call us today for a free consultation.

For more information on defending against IRS actions, see our guide on Tax Levy & Wage Garnishment Defense.

 

  • I discovered Fortress Tax Relief while searching for the top tax attorney agencies that assist individuals like myself who owe the IRS. Using AI, I generated a prompt that led me to their firm. After speaking with the team, I appreciated their transparent flat-fee structure and decided to sign up for their services. While there was some initial miscommunication, Attorney Feldman and Paralegal Ms. Culbertson worked diligently to help me achieve my goal. I am truly grateful for their support and would highly recommend Fortress Tax Relief to anyone in need of expert tax resolution assistance.

  • My experience at Fortress Tax Relief in Bend, Oregon was a very good one David Feldman, and his assistant Katie Culbertson were able to settle my case within 30 days and I was completely satisfied with the outcome. I would recommend their services to anyone who has gotten their self in trouble with back taxes.

  • Fortress is the real deal. I’ve worked with David Petzinger for several years and he was absolutely terrific. My tax situation was difficult to resolve , but he brought his experience and knowledge with him to help me negotiate a settlement with the IRS and a satisfactory offer in compromise, all with incredible patience. I highly recommend David and his team at Fortress to help you resolve any tax issues you may have.

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