At KPMG’s Meet the IRS conference on Jan. 22, Mary Beth Murphy, director of IRS Collections, provided an in-depth look at the agency’s evolving approach to tax collection, recent improvements and the challenges that lie ahead.

Her panel “An Overview of IRS Collections" covered key updates including post-COVID operational updates, enforcement priorities and digital transformation efforts within the IRS.  

Murphy began by addressing the IRS’s return to normal business operations following the disruptions caused by COVID-19. “A year ago, I couldn’t have said this, but we’re pretty much back to normal business operations post-COVID,” she said.

During the pandemic, the IRS paused sending automated collection notices, which created a backlog of unresolved tax debts. “Last year, we began sending automated collection notices—letters to individuals about prior tax debts. We started with the current year, 2022-2023. We’re hoping, and we’re on target, to continue our normal business operations.”  

She highlighted changes aimed at making the collection process more taxpayer-friendly, particularly the extension of response times for CP Series notices. “We did extend the CP Series of notices from five weeks to eight weeks, and I think that helps taxpayers resolve their issues. It gives them more time and prevents them from rushing.” She also pointed out that many IRS notices now include QR codes to direct taxpayers to online tools. “Many of our notices have QR codes to direct taxpayers to their online tax accounts and self-service operations,” she noted.  

Discussing unpaid balances, Murphy urged taxpayers to a act quickly to avoid further enforcement actions. “We tell taxpayers to read the notices thoroughly and to not wait to respond, and it’s important that they voluntarily resolve their tax issue. You don’t want it to come to field collection, and for us to have to go out and make that contact.” 

Murphy shared an example of a taxpayer who had not filed for several years and asked how to address the situation. “Just the other day, someone asked me—they hadn’t filed four years’ worth of returns, and they wanted to know how they do that. And I said, start with filing this year’s tax return, and then start working on your back ones and come to the IRS for assistance.”  

One of the most notable changes Murphy discussed was the elimination of unannounced field visits, a longstanding IRS practice that had raised concerns. “The cold calls just didn’t make sense anymore. There were safety concerns on our end for employees as well as taxpayers. I mean, how many people have a Ring camera now? About 90%,” she explained. 

These  improvements in collection come at a time when the Trump administration has been making moves to reduce the IRS workforce.  The Trusted Professional reported on Feb. 21 that the IRS started laying off thousands of probationary employees, a move that is expected to significantly impact the agency’s operations during tax season.