The agency had to scale back operations during the pandemic, but it is now resuming normal activities, including collection notices that were suspended during the crisis.
IRS ( Photo: Investopedia )
The Internal Revenue Service (IRS) is ramping up its operations again after receiving $80 billion in fresh funding
The Taxpayer Advocate Service, an independent office within the IRS, has warned taxpayers of the consequences of failing to file their tax returns by April 18, 2023. The blog post also informed taxpayers that collection activities would resume as the agency returns to normal operations.
The IRS will send out balance notices before collection notices, so it is essential to pay attention to any letters or notices received from the agency. Ignoring balance-due notices or any other IRS letters or notices could worsen the situation. If taxpayers owe money, it is recommended to go through the proper channels to figure out their options, even if they cannot pay off the entire balance. The IRS offers options such as agreeing to installment plans and applying for penalty relief under certain circumstances.
It is worth noting that a case is currently in front of the Supreme Court that will further outline how aggressive the agency can be when trying to hunt down delinquent taxpayers. However, for those who owe money, it is likely to have little or no effect on their current tax troubles.
The best course of action is to file the 2023 return by April 18 and keep an eye out for any notices from the IRS
The agency has been fairly lenient over the past few years, but taxpayers who owe back taxes or have otherwise been able to dodge the collection process over the past couple of years may want to prepare themselves for contact from the IRS or debt collectors. While Fast Company reached out to the IRS for more details about the agency’s timeline for increasing its collection operations, there has been no response yet.
In conclusion, the IRS is resuming normal operations, including collection notices that were suspended during the pandemic. Taxpayers who owe back taxes or have been able to dodge the collection process over the past couple of years should prepare themselves for contact from the IRS or debt collectors.
It is essential to pay attention to any letters or notices received from the agency and go through the proper channels to figure out options if taxpayers owe money.
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