The IRS has resumed sending out collection letters via mail, and tax professionals advise recipients not to disregard them.
These automated reminder notices began distribution in January and will continue to be sent out gradually over the next few months.
It is anticipated that over 3.7 million taxpayers enrolled in the IRS automated collection system will receive these reminder notices.
IRS Sends “LT38 Notices” Resuming Collection Reminders
The IRS is issuing “LT38 Notices” to inform taxpayers that certain collection notices were suspended during the pandemic.
These notices do not indicate an audit but rather signify the IRS’s resumption of reminders and provide updates on outstanding balances along with options for resolving the debt.
Recipients who have settled their outstanding balance within the past 21 days need not take action upon receiving the LT38 notice.
Many taxpayers may be surprised to receive these letters since the IRS had halted such reminders for the past two years.
Previous notices might have been overlooked or lost, contributing to the unexpected nature of these reminders.
Additionally, some individuals may find the situation perplexing due to erroneous automated notices sent by the IRS in 2021 and 2022.
Tax Reminder: Balances, Payments, Relief
The current reminder letter informs taxpayers of their outstanding balance, provides payment options, and details any penalty relief they may be eligible for.
The IRS advises taxpayers to promptly file any missing tax returns mentioned in the notice and encourages paying as much as possible to minimize interest and penalties.
Taxpayers unable to pay their full balance can arrange payment plans through IRS.gov/payments.
Several installment agreements and payment plans offered by the IRS are free of charge and accessible online at IRS.gov.
Your specific tax circumstances will determine the available payment options.
The IRS has enhanced self-service tools like the document upload tool and online payment plans, aiming to help taxpayers resolve their tax issues independently without requiring assistance from an IRS representative.