The IRS temporarily suspended the pursuit of taxes during the pandemic years, but that is now ending.
If you receive an automated collection notice from the IRS, DO NOT IGNORE IT. The IRS has leverage that no other creditor has, and they won’t forget, go away, or fade into oblivion.
The IRS has geared up to send notices for individual taxes that were behind before the 2022 tax year. They are also sending notices to businesses, organizations, trusts, and estates that have tax debts up to the 2023 tax year.
This applies to 4.7 million tax payers, 70% of them earning less than $100,000 a year.
Now for some GOOD NEWS.
While you still have to pay back taxes owed, the IRS has announced they will waive accumulated penalties and interest. How generous, right?! I know, but it’s something, and we’ll take it.
You don’t have to apply for your part of the $1 billion tax penalty relief program. The IRS will automatically apply it to your account, but do look at the figures to make sure what they say you owe is only the tax amount and not any added fees or interest.
Again, do not ignore a tax notice from the IRS. Prioritize this! And if you are unable to pay, call and work out a payment plan. The IRS will let people make monthly payments–without interest–so set up that plan and protect yourself from severe consequences.
