As a former IRS agent and teaching instructor taxpayers many would be surprised how many cases are written off as noncollectable by the Internal Revenue Service.

For your case to be written off as noncollectable your expenses must exceed your income as defined by the national, regional and localized standards test standards.

You can find those standards on our website or call us today for a free initial tax consultation to find out if your case can be put in a IRS hardship.

Report by the Treasury Inspector General for Tax Administration (TIGTA).

The Internal Revenue Service’s (IRS) field workload selection process is not designed to ensure that cases with the highest collection potential are identified, selected, and assigned to be worked, according to a new report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA).

In Fiscal Year 2013, the IRS collected over $3 billion dollars from delinquent taxpayers, but wrote off as much as $16 billion in taxes owed as not collectible.

While the field collects billions of dollars from delinquent taxpayers, resources have declined and many balance-due modules have been closed as currently not collectible. TIGTA performed this audit to determine whether the IRS’s workload identification, selection, and assignment practices ensure that the cases with the greatest collection potential are worked in the field.

In Fiscal Year 2013, 40 percent of the taxpayer delinquent accounts closed by the field were written off as currently not collectible.

There are several contributing factors limiting the effectiveness of the IRS’s collection efforts:

The IRS does not measure productivity or establish specific goals to evaluate case selection criteria.

Information systems do not track case source data, so management cannnot fully assess the effectiveness of field case selection criteria.

Case selection criteria do not consider the age of associated delinquencies, so many assigned cases include older delinquencies that will not likely be collected.

Case selection criteria do not consider the financial condition (such as income) of the delinquent taxpayers, so many of the assigned cases involve taxpayers with no ability to make payments.

Case selection criteria do not consider unsuccessful prior attempts to contact or locate the taxpayers.

IRS management has begun some initiatives intended to improve the workload selection process. While these initiatives could provide benefits, TIGTA believes that further action is warranted.

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