The IRS is facing a great deal of uncertainty heading into tax season. The agency has admitted that it is short-staffed and underfunded. It also abandoned a deal to require facial recognition for identity verification after public outcry.
Now, the IRS has announced that it will stop sending a dozen types of letters to taxpayers, including automated collection notices when a taxpayer owes additional taxes.
For individuals, the letters being stopped include those for unfixed tax returns, including first and second notices, as well as final notices for “Return Delinquency.” The IRS is also stopping first and second notices for “Balance Due,” as well as “Final Balance Due Notice- 3rd Notice, Intent to Levy,” and “Withholding Compliance” letters. Some of these letters have been discontinued both in English and Spanish.
As for business, the IRS is stopping “Return Delinquency” and “Final Notice-Return Delinquency” letters.
The IRS also hinted at the “possibility” of taking other actions in the future.
The IRS also said it entered this year’s filing season with “several million” returns that have not been processed. The letters have been stopped while the agency works through that backlog.
“IRS employees are committed to doing everything possible with our limited resources to help people during this period,” IRS Commissioner Chuck Rettig said in a statement.
The IRS, however, cannot legally stop all notices, Rettig…
