Skip to main content
IRS Collections

How Does the 2022 Inflation Reduction Act Impact IRS Collections and Audits

Working with the IRS has never been easy, and tax settlement agreements are always complicated affairs. If you are currently working to pay off your tax debt, you may wonder what the recently passed ‘Inflation Reduction Act of 2022’ has in store for you.

There has been a lot of back and forth about the Inflation Reduction Act and what it means to you. Here are a few details about how this act could impact you and some essential things to consider moving forward.

The “Army” of IRS Agents Are Not All Soldiers

A lot has been said of the supposed army of IRS agents who will soon be walking through the streets of America. There are some pundits and politicians who say, “the IRS will be hiring 87,000 armed agents to hunt down innocent taxpayers, relieving them of their hard-earned money in escalating waves of harassment.”

The reality behind the army of IRS agents is much different and far less troubling than what you may be hearing. Most of the new hires will be administrative personnel, IT workers bent on upgrading old hardware, customer service representatives to answer the endlessly ringing phones, and so on. That does not mean there will not be new agents on the job, but the scope of the new hires is not a reason to panic, even if you currently owe money to the IRS.

Enforcement Efforts Will Ramp Up

Even though only a portion of those new IRS hires will be “on-the-ground agents,” the overall goal of this bill for the IRS is to increase the amount of revenue they are collecting from taxpayers. There is reason to believe that the IRS will be more aggressive with its collection efforts because of the Inflation Reduction Act.

The nature of this bill has raised concerns that the IRS will have an increase in audits for small business owners and regular taxpaying citizens across the country. Our government claims the IRS’s efforts are geared more toward citizens in higher tax brackets; however, only time will tell if they do not target the “everyday” taxpayer. If you think you owe money to the IRS, this is the time to take it seriously to avoid any additional penalties and interest or, worst-case scenario, the IRS freezing any of your bank accounts and garnishing your wages.

Professional Tax Relief Guidance is More Important Than Ever

The IRS has been increasing its efforts against taxpayers even before passing the Inflation Reduction Act of 2022. Hopefully, you are working with a professional as you work with the IRS since the settlement process can get pretty complicated and working with a tax relief specialist ensures you can get the lowest settlement possible for your specific situation under the law. Ignoring the situation will only worsen it, as the longer you wait, the more expensive your situation will become.

So, do yourself and your wallet a favor by connecting with a tax resolution specialist like  East Coast Tax Consulting Group. We specialize in helping people get their IRS  tax problems settled and behind them once and for all!

 

Contact Us 

You deserve the best in IRS tax representation, tax preparation, and tax planning services. At East Coast Tax Consulting Group, you’ll work with a licensed CPA who will handle your case from beginning to end. We invite you to contact our team to schedule a free, confidential consultation.

[gravityforms id="5" title="false" description="false" ajax="true" tabindex="199"]
<script type="text/javascript">var gform;gform||(document.addEventListener("gform_main_scripts_loaded",function(){gform.scriptsLoaded=!0}),window.addEventListener("DOMContentLoaded",function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,initializeOnLoaded:function(o){gform.domLoaded&&gform.scriptsLoaded?o():!gform.domLoaded&&gform.scriptsLoaded?window.addEventListener("DOMContentLoaded",o):document.addEventListener("gform_main_scripts_loaded",o)},hooks:{action:{},filter:{}},addAction:function(o,n,r,t){gform.addHook("action",o,n,r,t)},addFilter:function(o,n,r,t){gform.addHook("filter",o,n,r,t)},doAction:function(o){gform.doHook("action",o,arguments)},applyFilters:function(o){return gform.doHook("filter",o,arguments)},removeAction:function(o,n){gform.removeHook("action",o,n)},removeFilter:function(o,n,r){gform.removeHook("filter",o,n,r)},addHook:function(o,n,r,t,i){null==gform.hooks[o][n]&&(gform.hooks[o][n]=[]);var e=gform.hooks[o][n];null==i&&(i=n+"_"+e.length),gform.hooks[o][n].push({tag:i,callable:r,priority:t=null==t?10:t})},doHook:function(n,o,r){var t;if(r=Array.prototype.slice.call(r,1),null!=gform.hooks[n][o]&&((o=gform.hooks[n][o]).sort(function(o,n){return o.priority-n.priority}),o.forEach(function(o){"function"!=typeof(t=o.callable)&&(t=window[t]),"action"==n?t.apply(null,r):r[0]=t.apply(null,r)})),"filter"==n)return r[0]},removeHook:function(o,n,t,i){var r;null!=gform.hooks[o][n]&&(r=(r=gform.hooks[o][n]).filter(function(o,n,r){return!!(null!=i&&i!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][n]=r)}});</script> <div class='gf_browser_unknown gform_wrapper gform_wrapper_original_id_5 gravity-theme whitepaper-cta-popup_wrapper' id='gform_wrapper_1423649816' ><div id='gf_1423649816' class='gform_anchor' tabindex='-1'></div> <div class='gform_heading'> <p class='gform_required_legend'>&quot;<span class="gfield_required gfield_required_asterisk">*</span>&quot; indicates required fields</p> </div><form method='post' enctype='multipart/form-data' target='gform_ajax_frame_1423649816' id='gform_1423649816' class='whitepaper-cta-popup' action='/how-does-the-2022-inflation-reduction-act-impact-irs-collections-and-audits/#gf_1423649816' novalidate> <div class='gform_body gform-body'><div id='gform_fields_1423649816' class='gform_fields top_label form_sublabel_below description_below'><div id="field_5_2" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_2"><label class='gfield_label' for='input_1423649816_2' >First Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_2' id='input_1423649816_2' type='text' value='' class='large' tabindex='199' placeholder='First Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_3" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_3"><label class='gfield_label' for='input_1423649816_3' >Last Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_3' id='input_1423649816_3' type='text' value='' class='large' tabindex='200' placeholder='Last Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_1" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_1"><label class='gfield_label' for='input_1423649816_1' >Email Address<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_email'> <input name='input_1' id='input_1423649816_1' type='email' value='' class='large' tabindex='201' placeholder='Email Address' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_4" class="gfield gform_validation_container field_sublabel_below field_description_below gfield_visibility_visible" data-js-reload="field_5_4"><label class='gfield_label' for='input_1423649816_4' >Comments</label><div class='ginput_container'><input name='input_4' id='input_1423649816_4' type='text' value='' autocomplete='new-password'/></div><div class='gfield_description' id='gfield_description_5_4'>This field is for validation purposes and should be left unchanged.</div></div></div></div> <div class='gform_footer top_label'> <button type='submit' onclick='if(window["gf_submitting_1423649816"]){return false;} if( !jQuery("#gform_1423649816")[0].checkValidity || jQuery("#gform_1423649816")[0].checkValidity()){window["gf_submitting_1423649816"]=true;} ' onkeypress='if( event.keyCode == 13 ){ if(window["gf_submitting_1423649816"]){return false;} if( !jQuery("#gform_1423649816")[0].checkValidity || jQuery("#gform_1423649816")[0].checkValidity()){window["gf_submitting_1423649816"]=true;} jQuery("#gform_1423649816").trigger("submit",[true]); }' id='gform_submit_button_1423649816' class='gform_button button om-trigger-conversion'>Submit</button> <input type='hidden' name='gform_ajax' value='form_id=5&amp;title=&amp;description=&amp;tabindex=199' /> <input type='hidden' class='gform_hidden' name='is_submit_5' value='1' /> <input type='hidden' class='gform_hidden' name='gform_submit' value='5' /> <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' /> <input type='hidden' class='gform_hidden' name='state_5' value='WyJbXSIsIjE3OGJjZmUyNjg3ZTQyOGFjZTRkZjMzZjBiOTAzYTRlIl0=' /> <input type='hidden' class='gform_hidden' name='gform_target_page_number_5' id='gform_target_page_number_5' value='0' /> <input type='hidden' class='gform_hidden' name='gform_source_page_number_5' id='gform_source_page_number_5' value='1' /> <input type='hidden' name='gform_random_id' value='1423649816' /><input type='hidden' name='gform_field_values' value='' /> </div> </form> </div> <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_1423649816' id='gform_ajax_frame_1423649816' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'></iframe> <script type="text/javascript"> gform.initializeOnLoaded( function() {gformInitSpinner( 1423649816, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery('#gform_ajax_frame_1423649816').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_1423649816');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_1423649816').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){jQuery('#gform_wrapper_1423649816').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_1423649816').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_1423649816').removeClass('gform_validation_error');}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ jQuery(document).scrollTop(jQuery('#gform_wrapper_1423649816').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_5').val();gformInitSpinner( 1423649816, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery(document).trigger('gform_page_loaded', [1423649816, current_page]);window['gf_submitting_1423649816'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}setTimeout(function(){jQuery('#gform_wrapper_1423649816').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_1423649816').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [1423649816]);window['gf_submitting_1423649816'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_1423649816').text());}, 50);}else{jQuery('#gform_1423649816').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger('gform_post_render', [1423649816, current_page]);} );} ); </script>
[gravityforms id="5" title="false" description="false" ajax="true" tabindex="199"]
<div class='gf_browser_unknown gform_wrapper gform_wrapper_original_id_5 gravity-theme whitepaper-cta-popup_wrapper' id='gform_wrapper_1824921192' ><div id='gf_1824921192' class='gform_anchor' tabindex='-1'></div> <div class='gform_heading'> <p class='gform_required_legend'>&quot;<span class="gfield_required gfield_required_asterisk">*</span>&quot; indicates required fields</p> </div><form method='post' enctype='multipart/form-data' target='gform_ajax_frame_1824921192' id='gform_1824921192' class='whitepaper-cta-popup' action='/how-does-the-2022-inflation-reduction-act-impact-irs-collections-and-audits/#gf_1824921192' novalidate> <div class='gform_body gform-body'><div id='gform_fields_1824921192' class='gform_fields top_label form_sublabel_below description_below'><div id="field_5_2" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_2"><label class='gfield_label' for='input_1824921192_2' >First Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_2' id='input_1824921192_2' type='text' value='' class='large' tabindex='199' placeholder='First Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_3" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_3"><label class='gfield_label' for='input_1824921192_3' >Last Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_3' id='input_1824921192_3' type='text' value='' class='large' tabindex='200' placeholder='Last Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_1" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_1"><label class='gfield_label' for='input_1824921192_1' >Email Address<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_email'> <input name='input_1' id='input_1824921192_1' type='email' value='' class='large' tabindex='201' placeholder='Email Address' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_4" class="gfield gform_validation_container field_sublabel_below field_description_below gfield_visibility_visible" data-js-reload="field_5_4"><label class='gfield_label' for='input_1824921192_4' >Phone</label><div class='ginput_container'><input name='input_4' id='input_1824921192_4' type='text' value='' autocomplete='new-password'/></div><div class='gfield_description' id='gfield_description_5_4'>This field is for validation purposes and should be left unchanged.</div></div></div></div> <div class='gform_footer top_label'> <button type='submit' onclick='if(window["gf_submitting_1824921192"]){return false;} if( !jQuery("#gform_1824921192")[0].checkValidity || jQuery("#gform_1824921192")[0].checkValidity()){window["gf_submitting_1824921192"]=true;} ' onkeypress='if( event.keyCode == 13 ){ if(window["gf_submitting_1824921192"]){return false;} if( !jQuery("#gform_1824921192")[0].checkValidity || jQuery("#gform_1824921192")[0].checkValidity()){window["gf_submitting_1824921192"]=true;} jQuery("#gform_1824921192").trigger("submit",[true]); }' id='gform_submit_button_1824921192' class='gform_button button om-trigger-conversion'>Submit</button> <input type='hidden' name='gform_ajax' value='form_id=5&amp;title=&amp;description=&amp;tabindex=199' /> <input type='hidden' class='gform_hidden' name='is_submit_5' value='1' /> <input type='hidden' class='gform_hidden' name='gform_submit' value='5' /> <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' /> <input type='hidden' class='gform_hidden' name='state_5' value='WyJbXSIsIjE3OGJjZmUyNjg3ZTQyOGFjZTRkZjMzZjBiOTAzYTRlIl0=' /> <input type='hidden' class='gform_hidden' name='gform_target_page_number_5' id='gform_target_page_number_5' value='0' /> <input type='hidden' class='gform_hidden' name='gform_source_page_number_5' id='gform_source_page_number_5' value='1' /> <input type='hidden' name='gform_random_id' value='1824921192' /><input type='hidden' name='gform_field_values' value='' /> </div> </form> </div> <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_1824921192' id='gform_ajax_frame_1824921192' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'></iframe> <script type="text/javascript"> gform.initializeOnLoaded( function() {gformInitSpinner( 1824921192, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery('#gform_ajax_frame_1824921192').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_1824921192');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_1824921192').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){jQuery('#gform_wrapper_1824921192').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_1824921192').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_1824921192').removeClass('gform_validation_error');}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ jQuery(document).scrollTop(jQuery('#gform_wrapper_1824921192').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_5').val();gformInitSpinner( 1824921192, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery(document).trigger('gform_page_loaded', [1824921192, current_page]);window['gf_submitting_1824921192'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}setTimeout(function(){jQuery('#gform_wrapper_1824921192').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_1824921192').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [1824921192]);window['gf_submitting_1824921192'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_1824921192').text());}, 50);}else{jQuery('#gform_1824921192').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger('gform_post_render', [1824921192, current_page]);} );} ); </script>