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IRS Resumes the Sending of Balance Due Notices

It has been reported that the Internal Revenue Service will begin sending out automated tax collection notices once again. These balance-due notices were paused from being sent out last year in order for the IRS to try and catch up on its backlog of unprocessed tax returns.


Deputy IRS commissioner Darren Guillot made this announcement earlier regarding the balance due notices. According to estimates, roughly 5-8 million taxpayers will receive a letter from the IRS letting them know money is owed by them to the agency. The estimated amount of taxpayers that will be receiving notices are those who filed a 2021 tax return and owe a balance to the agency from that return.

Backlog Mostly Cleared

Although the IRS has recently reported that they still have approximately 4.2 million in unprocessed tax returns as of mid-May, this is much better than previously reported numbers. While the agency continues to work at clearing this backlog, the National Association of Tax Professionals (NATP) is urging both taxpayers and professionals to be ready for this wave of new tax notices.

NATP Statement

“The IRS is resuming business as usual now that they’re getting a lot of the backlog dealt with,” said Tom O’Saben, government relations, and tax content director at the NATP. “People should not ignore a notice from the IRS. As the notices get further and further along, you face the possibility of having a levy on a bank account or liens placed against them. The first thing I would advise taxpayers to do if they can, is to set up an online account with the IRS. It’s about a 20-minute process, but then they can see exactly what the IRS is seeing.”

Wrap Up

It is common for taxpayers to seek advice from a tax professional when they begin receiving notices from the IRS. When looking for a tax professional in this scenario, it is important to know that a quick and easy fix is most likely not an option. However, hiring a professional is quite effective as they are aware of the options offered by the IRS and the agreements that a taxpayer and the IRS usually come to. If you have any more questions, give us a call at 516-541-6549 for more information.


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