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Tags: irs | reminder | letters | back | taxes | covid

IRS to Resume 'Special Reminder Letters' for Back Taxes

By    |   Friday, 22 December 2023 03:42 PM EST

The Internal Revenue Service said it will resume sending "special reminder letters" next month after a two-year hiatus for people who owe back taxes from the COVID-19-era.

The IRS suspended sending the letters in February 2022 over the backlog caused by the COVID-19 pandemic. The IRS announced the resumption of the automatic collection notices on Tuesday, the same day it announced $1 billion in penalty relief for approximately 4.7 million individuals — most making under $400,000 per year — who owed back taxes during the pandemic.

But now, it’s back to business as usual — failure-to-pay penalties for unpaid balances from 2020 and 2021 will resume April 1, 2024.

"Although these reminder notices were suspended, the failure-to-pay penalty continues to accrue for taxpayers who did not fully pay their bills in response to the initial balance due notice," read the IRS announcement.

"To help taxpayers as the normal processes resume, the IRS will be issuing a special reminder letter starting next month. The letter will alert the taxpayer of their liability, easy ways to pay and the amount of penalty relief, if applied," the agency wrote. 

Payers can set up short-term payment plans for less than $100,000 owed in taxes, penalties and interest.

"The IRS wants to help taxpayers and provide them easy options to deal with unpaid tax bills and avoid additional interest and penalties," IRS Commissioner Danny Werfel said. "People receiving these notices should remember that there are frequently overlooked options that can help them set up an automatic payment plan or catch up with their tax filings."

Mark Swanson

Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.

© 2024 Newsmax. All rights reserved.


Newsfront
The Internal Revenue Service said it will resume sending "special reminder letters" next month after a two-year hiatus for people who owe back taxes from the COVID-era. The IRS suspended sending the letters in February 2022 over the backlog caused by the COVID-19 pandemic....
irs, reminder, letters, back, taxes, covid
257
2023-42-22
Friday, 22 December 2023 03:42 PM
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