IRS Undeliverable Mail Costs Millions

From WebCPA:

The Internal Revenue Service's current method of sending notices and letters is costing taxpayers millions of dollars because it results in a large amount of undeliverable mail, according to a new government report.

The report, from the Treasury Office of the Treasury Inspector General for Tax Administration (TIGTA), found that the IRS sends out approximately 200 million notices and letters each year to individual and business taxpayers and their representatives at a cost of $141 million. In 2009, approximately 19.3 million of those mailings were returned to the IRS at an estimated cost of $57.9 million.

TIGTA assessed whether the IRS can reduce the volume of undeliverable mail. Its review of a random sample of 331 notices and letters returned to the IRS found that 37 percent were undeliverable because of invalid or nonexistent addresses; 35 percent had the wrong address; 24 percent were refused by the taxpayer or the taxpayer was not at home to receive the certified or registered mail; and four percent were returned for other reasons.

TIGTA recommended that the IRS allow taxpayers to submit a change of address over the telephone and improve its systems for identifying known bad addresses. TIGTA also recommended implementing a standardized procedure for processing undeliverable mail.

"The Internal Revenue Service needs to take advantage of the latest technologies and systems now available to cut down on undeliverable mail, thereby saving the taxpayers money," said TIGTA J. Russell George, the Treasury Inspector General for Tax Administration.

IRS announces Open House for Individuals and Small Businesses

Do you struggle to make sense of your taxes? Maybe you have questions about a notice you received or need help preparing your tax return? I have good news for you. The IRS recently announced that they will be hosting a special nationwide Open House on Saturday, May 15. Individual taxpayers and small business owners can get help with their tax returns, IRS notices and payments, audits and more. At least one IRS office will be open in every state on May 15th from 9am until 2pm. During the Open House you can speak with an IRS representative either in person or over the phone. Keep in mind though, small business owners with tax issues should probably consult a qualified tax professional.

This is the first in a series of Open House days the IRS has scheduled, with more events planned for June 5 and June 26. If you struggle with back taxes and do not want to speak to the IRS, you can always contact one of my representatives by visiting my website here.

For the location of the nearest IRS Open House this Saturday, click here.