IRS Collection Letters

The Internal Revenue Service has begun sending collection letters again after a two-year pause. It is estimated that almost 4 million taxpayers who owe the IRS money will receive IRS notices during the next several months. The IRS suspended some collection actions and stopped sending collection reminder notices in February, 2022, due to its backlog of cases and the COVID-related shutdown. The IRS Notice, called a LT38 Notice, is letting you know that you have a tax debt and there are options to satisfy it.

Don’t ignore IRS letters. There are several options available to taxpayers with an outstanding tax debt. If prior year returns haven’t been filed, then it is best to file those as soon as possible. Also, the IRS is providing penalty relief for years 2020 and 2021—failure-to-pay penalties.

We at Bowman Law Firm assist taxpayers with IRS tax debt and/or unfiled prior year returns.

Gene M. Bowman, Bowman Law Firm, Huntsville, Alabama