The IRS has put collections on hold over the past few years. Due to a combination of a budget that’s been slashed over the past 10 years as well as the challenges of COVID, the IRS had ceased taking aggressive actions against most taxpayers since 2020. But with $80 billion in funding, that has come to a stop.
The IRS has started sending a new letter (LT38) to taxpayers. This letter is the start of IRS aggressively getting back into the collections business.
The letter reminds taxpayers that they have a balance due and that they must begin dealing with their tax issue. As noted above, many business owners with back taxes have noticed a substantial drop in IRS letters for the last couple of years. As long as it seemed the IRS had forgotten about them, they felt there was no reason for them to take action.
If your strategy for dealing with your back IRS issue has been to simply hope they would leave you alone, be aware that in the coming weeks and months, this strategy will no longer work as the IRS has stated that they will move back towards liens, garnishments, asset seizures, and on-site (and at-home) visits in order to secure compliance with past-due obligations.
If you owe the IRS and receive the LT38, you should follow the instructions and address your IRS problem now. If you need professional help, feel free to contact me at for a FREE consultation at (954) 715-7285 or get on my personal calendar
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