IRS Resumes Tax Debt Collection Post-Pandemic, Sparking Financial Stress Concerns

CINCINNATI (WKRC) — The IRS has resumed its efforts to collect tax debt for the first time since the COVID-19 pandemic, leading to increased financial stress for many individuals.

It has been noted that people may be receiving more voicemails offering assistance with IRS debt, which can be stressful for several reasons.

Attorney Bill Hesch, a tax law specialist, explained the situation on Local 12’s “What’s Happening in Health” show.

“The IRS is now opening up, and they are starting a collection effort, so that’s the first step,” said Hesch. “People have not been contacted through the IRS since COVID, so now you’re getting letters, you’re getting notices, they’re filing taxes, and that’s when companies will get out there and contact you and say, ‘We help with debt relief with the IRS.'”

Hesch emphasized that there is no special action required from individuals, as the IRS has established rules to assist people in managing their tax debt.

“The thing that people need to know is there is nothing special about what you need to do. The IRS has the rules, and they’re actually pretty good, I think, to try to help people get on the right track,” said Hesch.

Hesch also warned about potential scams from companies claiming to offer debt relief. He advised individuals to be cautious of anonymous ownership, lack of a company address, unprofessional staff seeking personal information, and excessive fees for services.

“Money stress,” Hesch said. “Can really divide families.”

He offered to direct those in need to appropriate help, adding that initial consultations typically have no charge. To find out more information about Hesch Law Cincinnati, click here.