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Why IRS notices are increasing and what you should do about it

Why IRS notices are increasing and what you should do about it

Photo: Metro Services, Saga Communications


(607NewsNow) — If it feels like more people are getting letters from the IRS lately, you’re not imagining it. Between recent IRS layoffs and the increased use of automated systems and AI to flag returns, there’s been a noticeable surge in notices being sent out, and not all of them are accurate.

That combination is creating real confusion for taxpayers. And here’s the key point: even if a notice is wrong, you still have to deal with it.

What’s Going On?

With fewer staff and more reliance on automation, the IRS is processing returns and generating notices differently than in the past. AI-driven systems are designed to catch discrepancies, but they don’t always understand context. That means taxpayers are sometimes receiving letters about issues that either don’t exist or are based on incomplete information.

We’re seeing:

· Notices for income that was already reported correctly

· Duplicate or conflicting letters

· Requests for payment on balances that aren’t actually owed

And unfortunately, many people ignore these notices, especially when they believe they’re incorrect. That’s a mistake.

Why You Can’t Ignore IRS Notices

Even if a notice is wrong, ignoring it can lead to penalties, interest, or further escalation. The IRS assumes the notice is valid unless you respond and prove otherwise.

Handling it quickly, and correctly, can prevent a small issue from turning into a much bigger (and more expensive) problem.

The Reality: Not Everyone Will Help

A lot of tax offices are overwhelmed right now. Some simply won’t take on notice resolution cases, especially if they didn’t prepare the original return. Others may not have the time to dig into complex IRS correspondence issues.

That leaves many taxpayers stuck trying to navigate confusing letters on their own.

Where Sprague & Jackson Steps In

At Sprague & Jackson, this is exactly where we help.

We understand that these notices, accurate or not, require attention. Our team works directly with clients to:

· Review the notice and determine if it’s valid

· Communicate with the IRS on your behalf

· Provide documentation to correct errors

· Help prevent future issues through better planning

Whether it’s a simple clarification or a more complex dispute, we make sure nothing slips through the cracks.

Don’t Forget About Estimated Taxes

On top of all this, May is also a key time to stay on track with estimated tax payments, especially if you’re self-employed, own rental property, or have investment income.

With everything happening at the IRS right now, staying proactive is more important than ever. Making accurate estimated payments can help you avoid triggering additional notices in the first place.

For help with IRS notices or proactive tax planning, reach out to Sprague & Jackson or visit www.sprjac.com to learn more.

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