• Jim Payne

The IRS and Third-Party Contacts

You get a call from your stockbroker or maybe even a customer that they have been contacted by the IRS requesting information about you. The IRS is supposed to notify you in advance of such contacts, but that notification in the past has been less than clear about their intent. The result is that you are taken by surprise and embarrassed while trying to explain to someone why they were called. That IRS process has now been changed for the better.


The 2019 Taxpayer First Act includes a requirement for the IRS to improve their notice requirements before contacting a 3rd Party regarding the assessment or collection of taxes. Effective 8/15/19 the IRS will send a clearly stated notice of their intent to contact which will have a definite time that covers no more than one year in the future. They will also send you this notice a minimum of 45 days in advance of the contact.


Why is this good news? With proper notice you will have an opportunity to satisfy the IRS’s request for information without them contacting the other parties. Better that you provide the documents rather than the government demanding it.


You may also request from the IRS a list name for of all 3rd Parties that they have contacted. This can be a written or oral request made with the auditor.


If you or someone you know has received a Notice of Intent to Levy or some other federal or state tax issue, please feel free to contact me at either (352) 317-5692 or email jim@backoffice2.net.

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