/IRS Backlog Just Triggered an Overflow of Collection Notices

IRS Backlog Just Triggered an Overflow of Collection Notices

The Internal Revenue Service is prematurely sending some Americans collection notices even though they filed their returns, as the agency works to wade through a deluge of unprocessed returns from years past.

That’s according to a report from National Taxpayer Advocate Erin Collins, who warned that the IRS took too long to process taxpayer responses to its notices, further delaying refunds and in some instances, leading to premature collection notices – an occurrence that prematurely hurts low-income Americans.

The IRS sent tens of millions of notices to taxpayers in 2021, including 14 million math error notices, automated underreported notices (where an amount reported on a tax return did not match the corresponding amount reported to the IRS on Form 1099), notices requesting a taxpayer to authenticate his or her identity and collection notices.

In many cases, taxpayer responses were required; if individuals failed to respond – or they did and the IRS failed to process it due to the severe backlog – it could “take adverse action or not release the refund claimed on the tax return,” Collins wrote.

Keep reading at Fox Business.