Are you aware that starting in January, the IRS will begin sending automated collection notices and letters to individuals, businesses, tax-exempt organizations, trusts, and estates with tax debts prior to 2022 for individuals and prior to 2023 for businesses? These notices and letters were previously paused due to the pandemic, but the IRS is taking steps to return to business as usual.
It’s important to note that the pause in collection mailings affected only follow-up reminder mailings. The IRS did not suspend the mailing of the first, or initial, balance due notices for taxpayers such as the CP14 and CP161 notices. However, this pause meant that some taxpayers who have long-standing tax debt have not received a formal letter or notice from the IRS in more than a year, while some of this older collection work has been paused.
To help these taxpayers and ensure they are aware of their tax liability, the IRS will be issuing a special reminder letter next month. This letter will give them a chance to address the tax issue before the next round of letters are issued. After receiving the reminder mailing, taxpayers with long-standing unresolved tax issues will receive the subsequent notice, informing them of a more serious step in the tax collection process.
If you are a current tax year 2022 individual or third quarter 2023 business taxpayer, you may have already received automated collection notices this fall. But if you have long-standing tax debt, this is your chance to take action and address the issue before it becomes more serious. Don’t let this opportunity pass you by.
Enrolled Agents (EAs) are federally-licensed tax practitioners who may represent taxpayers before the IRS when it comes to collections, audits and appeals. As authorized by the Department of Treasury’s Circular 230 regulations, EAs are granted unlimited practice rights to represent taxpayers before IRS and are authorized to advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Enrolled agents are the only federally-licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS.
