Severely backlogged IRS with ‘limited resources’ temporarily halts slew of tax-return notices

(MARKETWATCH) – The IRS says it’s going to stop mailing out more than a dozen notices to taxpayers as it keeps trying to reduce paperwork and consternation amid the current tax season, and a backlog of unprocessed returns from last year. These temporarily halted letters include balance due notices, automated collection notices and unfiled tax return notices, the IRS said Wednesday.

Earlier this month, the agency said it was pausing letters which stated it didn’t have records of an income-tax return even though the taxpayer paid up.

The IRS is working through a pile of unprocessed documents, that, as of late December, included 6 million original tax returns, 2.3 million amended returns and 5 million pieces of taxpayer correspondence. So the odds are the IRS may already have the documents and data it’s looking for with the notices.

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