Friday, February 16, 2024

IRS sending 3.7 million special letters for first time in 2 years: Why you shouldn’t panic

 


For the first time since the pandemic, the Internal Revenue Service is sending out collection letters. And while no one wants to look in their mailbox and see a letter from the tax agency, the letter doesn’t mean you’re being audited.

Automated reminder notices resumed in January and are set to be delivered on a staggered basis over the next several months, the Detroit Free Press reported. The notices – technically known as LT38 – were put on hold during the COVID-19 pandemic but will now be delivered to some 3.7 million taxpayers who have an outstanding tax bill for 2020 or 2021.

The letter, which provides updates on outstanding balances and options

 to resolve the debt, is not a notice of an audit.

“If you received a LT38 notice, it’s letting you know that during the pandemic some collection notices were suspended. However, we’re resuming normal operations and providing you with an update on your outstanding balance to help you stay informed and offer you self-service options to resolve your account. This isn’t an audit,” the IRS said on its website.

“It’s always in your best interest to pay in full as soon as you can to minimize interest and penalties. The IRS has information and options available to help you meet and understand your tax responsibilities,” it added.

Experts recommend anyone who receives a letter to call the provided number and to seek help from a tax professional.

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