The IRS Resumes Collections Notices: What You Need to Know Before It’s Too Late

The Internal Revenue Service (IRS) has announced that it will resume issuing collections notices to taxpayers that were previously suspended during the COVID-19 pandemic. Here are some important points to note:

  1. No date has been set for when the notices will be sent out, but the IRS has a detailed plan in place to stagger the issuance of different types of notices to avoid overwhelming the agency.
  2. The IRS will communicate with taxpayers, tax professionals, and Congress on the timing of the plans to ensure that no one is caught off guard by the generation of notices.
  3. The plan is to give most taxpayers a gentle reminder notice before sending a final Notice of Intent to Levy to avoid the appeals process and get taxpayers back into compliance.
  4. The IRS will look at the totality of the 500-series of notices and taxpayers and their circumstances to see if there is a more efficient way of communicating and collecting past due amounts.
  5. The agency has been working with National Taxpayer Advocate Erin Collins, who has offered input that the IRS is incorporating and taking into consideration every step of the way.
  6. The staggered approach will help practitioners and the Taxpayer Advocate Service from being overwhelmed, as well as the IRS.
  7. The IRS will start generating CP-14 notices, which are the statutory due notices, in the very near future, and these will be sent out to taxpayers around the end of May.

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