Receiving correspondence from the Internal Revenue Service (IRS) typically ranks low on anyone’s list of preferred experiences, particularly when it pertains to monetary requests.
Recent reports indicate that the IRS has resumed the issuance of collection letters.
As detailed by the Detroit Free Press, automated reminder notifications will be dispatched via mail over an extended period in the coming months.
It is anticipated that over 3.7 million taxpayers across the United States with outstanding balances from either 2020 or 2021 will receive these notices, commonly referred to as LT38 notices.
However, should you receive one of these correspondences via mail, it is advisable to remain composed.
The receipt of such a letter does not automatically signify an impending audit or the imminent arrival of an IRS agent at your residence to collect the outstanding debt.
IRS Letter Clarification: Addressing Outstanding Balances
As explicitly stated by the IRS, the letter primarily serves as a notification regarding any outstanding balance and provides recommendations for addressing the debt.
It is important to note that it does not constitute a notice of an impending audit.
The IRS states on its website that if you have received an LT38 notice, it indicates that certain collection notices were temporarily halted during the pandemic.
Nevertheless, regular operations have resumed, and the notice serves to provide you with an update on your outstanding balance, facilitating your awareness and offering self-service options to address your account. Importantly, the receipt of this notice does not signify an audit.
In the event that you receive one of these correspondences, the IRS advises the following:
- Thoroughly review the notice and adhere to its directives.
- Ensure that any outstanding tax returns are promptly filed, if applicable.
- Settle any outstanding balances promptly to avoid accruing interest or penalties.
For those unable to fulfill the payment obligations immediately, there are viable options.
The IRS offers payment plans to facilitate managing the debt. Additionally, individuals can request a temporary postponement of collection activities until their financial circumstances improve.
