Balance Due Notices from IRS to Start Up Again

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IRS begins sending balance due notices again.

IRS Begins Sending Balance Due Notices Again

After a year of suspended notices, an estimated 5 million to 8 million taxpayers will begin receiving notices that they owe money to the IRS. The Internal Revenue Service has restarted mailing out the automated collection notices that it paused last year while it tried to catch up on its backlog of unprocessed tax returns.

According to the IRS, its CP14 notices were never entirely suspended during the COVID-19 pandemic, and the projected figure refers to taxpayers who filed a Tax Year 2022 return and will receive a balance due notice as required after tax season. In February 2022, the IRS suspended the mailing of about a dozen other notices to allow it to catch up with its backlog of millions of unprocessed tax returns from that tax season and the prior year. Those included the CP80 for unfiled tax returns; the CP501, CP503 and CP504 first, second and final balance due notices (the third of which is an intent to levy); and the 2802C withholding compliance letter, as well as Spanish-language CP259, CP518, CP618 and CP959 notices about return delinquency.

The IRS states it is caught up on its unprocessed returns from last year. The National Association of Tax Professionals is urging taxpayers and tax preparers to brace for the onslaught of new notices. People should not ignore a notice from the IRS. This could result in the possibility of having a levy on a bank account or liens placed against you.

The IRS offers options like extensions, payment plans, installment agreements and offers in compromise that a taxpayer or tax professional can arrange.