Misfired IRS Letters

Over the last couple years, the IRS has sent millions of erroneous automated letters to tax filers, causing mass confusion and frustration. However, there's help on the way…

​As of Wednesday, February 9, the IRS released a memo saying it is suspending numerous automated letters, including balance due notices and unfiled tax return notices.
 
With the IRS more than several million returns behind in its processing, these letters are often outdated in the information presented.

This IRS halt on auto-letters is much welcomed news for taxpayers who have received these letters, and their tax preparers who are having to respond to unnecessary IRS-caused chaos.

We can vouch for this move big time, as we’ve experienced frustration on behalf of our clients. We’ve had several clients receive notices saying they didn’t pay their taxes owed, when they had electronic confirmation as well as bank statement debits to the contrary. Then calls are unanswered by the IRS when clarification is requested.

These automated letters are supposedly being suspended until the IRS is caught up.

In the meantime, over 1,200 new IRS agents have been employed to help with this backlog of unprocessed returns and unanswered taxpayer calls.