The IRS is facing a great deal of uncertainty heading into tax season. The agency has admitted that it is short-staffed and underfunded. It also abandoned a deal to require facial recognition for identity verification after public outcry.

Now, the IRS has announced that it will stop sending a dozen types of letters to taxpayers, including automated collection notices when a taxpayer owes additional taxes. 

For individuals, the letters being stopped include those for unfixed tax returns, including first and second notices, as well as final notices for “Return Delinquency.” The IRS is also stopping first and second notices for “Balance Due,” as well as “Final Balance Due Notice- 3rd Notice, Intent to Levy,” and “Withholding Compliance” letters. Some of these letters have been discontinued both in English and Spanish. 

As for business, the IRS is stopping “Return Delinquency” and “Final Notice-Return Delinquency” letters. 

The IRS also hinted at the “possibility” of taking other actions in the future.  

The IRS also said it entered this year’s filing season with “several million” returns that have not been processed. The letters have been stopped while the agency works through that backlog. 

“IRS employees are committed to doing everything possible with our limited resources to help people during this period,” IRS Commissioner Chuck Rettig said in a statement. 

The IRS, however, cannot legally stop all notices, Rettig said. 

“We are working hard, long hours pushing creative paths forward in an effort to be part of the solution, rather than the problem,” Rettig added. “Our employees continue to expend every effort to balance a confluence of multiple, unprecedented demands − including successfully starting the filing season, working our inventory of unprocessed tax returns as well as looking for additional ways to minimize burden for taxpayers, tax professionals and businesses.”

Watching out for Scams 

Last week, the IRS warned against scammers who are active during tax season, which include efforts involving text messages, email phishing, unemployment fraud, and other common schemes of that nature. It’s part of the IRS’ efforts, going back to the Security Summit in 2015, to help taxpayers fight identity theft. 

"With filing season underway, this is a prime period for identity thieves to hit people with realistic-looking emails and texts about their tax returns and refunds," Rettig said in that announcement last week. "Watching out for these common scams can keep people from becoming victims of identity theft and protect their sensitive personal information that can be used to file tax returns and steal refunds.”

Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.

Image: Reuters.