At the start of 2022, the IRS issued an announcement that may have seemed a little odd at first. They stated that the IRS automated notices are temporarily being “turned off”, so let’s take a look at why this is happening and what you need to know going forward.
The Current Situation with the IRS Announcements
A lot of unexpected circumstances have pushed the IRS into a massive backlog. The pandemic, tax law changes from Congress, the demands on the IRS offices to send out three rounds of stimulus checks, and setting up the automatic payment system for the advance child tax credits has put a lot of strain on the typical IRS process.
What’s more, there are ongoing complications with payments being processed without an accompanying tax return. The IRS says this money will be refunded if the return isn’t filed, but that can also lead to penalties and automated notices that demand payment—even when those errors were already addressed and fixed.
Because of all this stress, the IRS has announced that the following automatic notices will be paused for a short time. This is effective immediately:
· Unfiled Tax Return Notices
· Return Delinquency Notices
· Tax Balance Due Notices
· Withholding Compliance Letters
With these automated notices on-hold, a lot of people will be able to avoid additional hardship and anxiety of hearing from the IRS in the coming months. Receiving a confusing letter can certainly throw a wrench in our day-to-day lives, which is why this strategy should actually help give everyone a leg up. The IRS won’t need to field as many questions and corrections while they continue to process last year’s tax returns. And the taxpayers can carry on as usual without being constantly bombarded by automated notices.
Just don’t forget: this change is temporary. The IRS has explained that it will turn their automated notices back on after the current backlog of processing tax returns gets organized and under control.
Next Steps for Dealing with a Notice
First things first, if you do happen to receive a notice, be sure to reply. The IRS might suggest that this isn’t necessary, but it’s better to be safe than sorry.
Send out a timely, written response and include a confirmation of the date sent. Include it on both your letter itself, and then send using certified or express mail to get tracking information. Then you’ll be at-the-ready if the IRS is still having trouble with sorting out your details down the road.
Ready to Get True Peace of Mind?
There’s no doubt that the tax code is tricky. Then add that to the ever-changing IRS notifications and annual updates! You don’t need to navigate this alone. Our team at NSO & Company can help ease your mind and confirm that nothing is getting overlooked on your individual and/or business tax returns.
We’re always happy to connect with clients year-round and help them make sense of any IRS notices, so please don’t hesitate to reach out. You surely have questions about your current situation, as well as about what this latest IRS announcement and other letters you may have received actually mean. We’ll give you the information you need to feel more confident and ensure your tax responsibility is in the clear!
