Media outlets and taxpayer watchdogs alike have dogged the Internal Revenue Service (IRS) for its struggles to deal with a backlog of millions of unprocessed tax returns. This makes recent news the federal agency has caught up with its backlog noteworthy. This is significant because as recent as April, the agency stated it was behind in processing almost four million returns.
How did the IRS catch up?
It appears the agency used a portion of the $80 billion in funding from the recently passed Inflation Reduction Act to hire on staff to help address the backlog.
What does this mean for taxpayers?
The IRS has stated that it processed returns from 2021 with few exceptions. These include those with errors or that require additional review. The agency has also stated that it will resume sending collection notices which were put on pause last year.
As such, it is likely that taxpayers may start getting collection notices from the IRS.
What if I get a collection notice?
Review the correspondence for any deadlines. A failure to meet these can mean additional penalties and fees. If you do not agree with the agency’s findings, you do have options. Reviewing these options and deciding on a course of action before those deadlines is important.
The attorneys at Goldburd McCone can help. We have experience with these cases and can review your situation. There are options both to fight back and to come up with a more manageable payment plan. We can discuss the benefits and risks of both and help you decide the best option for your case.