IRS Suspension of Automated Tax Notices May Help with Tax Debt

By
Education & Training with Alexandria Louis Tax Solutions LLC

It is no secret that the IRS has millions of unprocessed tax returns.  If you have attempted to call the department over the past few years, you know they are short on employees too.  In addition to the that fiasco, the IRS sent out automated letters to thousands of individuals with tax debt.  Some of these notices were sent in error because they were sent out of sequence.  Thankfully, some taxpayer and tax professional advocates petitioned the IRS and Congress to stop some automated notices.  This temporary suspension could be an opportunity for individuals with tax debt.  Let’s see how.

The IRS is putting the majority of its manpower into getting the backlog of returns processed.  Considering this is its primary focus, this gives individuals with tax debt TIME to develop a strategy to eliminate the tax debt while the IRS is focused on something else.  This does not mean that you should sit on the sideline and wait for the IRS to contact you about your debt.  Rather, it means you will evaluate which of the tax resolution strategies will work for your situation and submit a request for it.  These solutions include an installment agreement, an offer-in-compromise, or currently not collectable status.  If you do not know which one applies to your situation, contact to a tax professional who offers tax representation to help guide you.  Remember, your balance is accruing penalties and interest, so it is important to act fast.  The IRS will only be distracted for a little while and it is anticipated that the collection efforts will be intense once the backlog of taxes returns is cleared.

We are here to help with tax resolution strategies.  Contact us if you need help with a plan for your tax debt.  

Alexandria Louis Tax Solutions – A boutique tax firm in Memphis, TN

Comments (3)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Lequita. Sage advice to get in front of the problem. Put your best foot forward. Enjoy your day.

Feb 21, 2022 04:12 AM
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Thanks for sharing Lequita!!! Great information!!!

The IRS is putting the majority of its manpower into getting the backlog of returns processed.  Considering this is its primary focus, this gives individuals with tax debt TIME to develop a strategy to eliminate the tax

 

Feb 21, 2022 04:17 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

 Great information, thanks for sharing.  I hope you have a great day. Also, it is Taco Tuesday-eve! bill

Feb 21, 2022 05:26 AM