The IRS is suspending the mailing of additional letters as part of its efforts to help taxpayers during this pandemic period.
These mailings include balance due notices and unfiled tax return notices among others. Much of this is due to the IRS entering this filing season with several million original and amended returns filed by individuals and businesses that have not been processed due to challenges caused by the pandemic. The IRS, therefore, is taking this step to help avoid confusion for taxpayers and tax professionals.
These automatic notices are being temporarily stopped until the IRS works through the backlog. The inventory of prior year returns will continue to be assessed to determine the appropriate time to resume the notices. Some taxpayers and tax professionals may still receive these notices during the next few weeks.
Rectify the Situation ASAP
However, if you or your tax professional believes a notice is accurate, you should act to rectify the situation. For example, if you have a balance due, be aware that interest and penalties can continue to accrue.
Some Notices May Continue to be Issued
IRS employees may, in select circumstances, issue notices to particular taxpayers to resolve specific compliance issues.
The IRS does not have the authority to stop all notices as many are legally required to be issued within a certain timeframe. The IRS states they will continue to assess other changes and system modifications that may be implemented to assist taxpayers on an array of issues. Further information will be forthcoming throughout the filing season.
A list of suspended notices appears at the end of this article.
A Final Note
Those who have a filing requirement and have yet to file a prior year tax return or to pay any tax due should promptly do so as interest and penalties will continue to accrue. Contact your tax professional if you need assistance.
Stay safe. Stay well.
Bayshore CPA’s, P.A. are your local Certified Public Accountants
and Tax Resolution Specialists conveniently located
in Mooresville, North Carolina
Image: Photo 30070518 / Irs Notice © Jeff Wasserman | Dreamstime.com
|CP80||Unfiled Tax Return||This notice is generally sent when the IRS credited payments and/or other credits to a taxpayer’s account for the tax period shown on the notice, but the IRS hasn’t received a tax return for that tax period.|
|CP59 and CP759 (in Spanish)||Unfiled Tax Return(s) – 1st Notice||IRS sends this notice when there is no record of a prior year return being filed.|
|CP516 and CP616 (in Spanish)||Unfiled Tax Returns – 2nd Notice||Request for information on a delinquent return as there is no record of a return filed.|
|CP518 and CP618 (in Spanish)||Final Notice – Return Delinquency||This is a final reminder notice when there is no record of a prior year(s) return filed.|
|CP501||Balance Due – 1st Notice||This notice is a reminder that there is an outstanding balance on a taxpayer’s accounts.|
|CP503||Balance Due – 2nd Notice||This notice is the second reminder that a there is an outstanding balance on a taxpayer’s accounts.|
|CP504||Final Balance Due Notice – 3rd Notice, Intent to Levy||The IRS sends this notice when a payment has not been received for an unpaid balance. This notice is a Notice of Intent to Levy (Internal Revenue Code Section 6331 (d)).|
|2802C||Withholding Compliance letter||This letter is mailed to taxpayers who have been identified as having under-withholding of Federal tax from their wages. This letter provides instructions to the taxpayer on how to properly correct their tax withholding.|
|CP259 and CP959 (in Spanish)||Return Delinquency||IRS sends this notice when there is no record of a prior year return being filed.|
|CP518 and CP618 (in Spanish)||Final Notice – Return Delinquency||This is a final reminder notice that we still have no record of a prior year tax return(s).|