IRS Suspends Mailings of Some Tax Collection, Delinquent Return Notices by Arthur Dichter, JD, LLM
The IRS, buried under millions of unprocessed tax returns from tax year 2020, is suspending the automatic mailings of certain letters and notices it usually generates when it identifies individuals and businesses that failed to file required tax returns or that owe additional taxes. The announcement comes just weeks after the IRS began accepting tax returns for tax year 2021.
According to the IRS, the pandemic and new tax laws introduced over the past two years helped to make 2021 among the most challenging year taxpayers and tax professionals have ever experienced. Despite the IRS’s intention to suspend notices until it can dig its way out of the current backlog, it is possible that some notices will make their way to taxpayers’ mailboxes. If you receive an IRS notice that seems correct and accurately assesses your unique tax circumstances, such as an outstanding tax bill or unfiled tax return, contact your tax advisor to help you rectify the issue at hand. Failure to do so can result in the accrual of interest and penalties.
Following are some of the notices/letters the IRS suspended temporarily:
- Notice of Unfiled or Delinquent Individual Tax Return: CP80, CP59 and CP759, CP516 and CP 616, and CP518 and CP618
- Notice of Unfiled or Delinquent Business Tax Return: CP259 and CP959, and CP518 and CP619
- Notice of Outstanding Tax Balance Due: CP501, CP503 and CP504
- Letter 2802C advising taxpayers that not enough federal income taxes were withheld from their paychecks to cover the taxes they owe.
About the Author: Arthur Dichter, JD, is a director of International Tax Services with Berkowitz Pollack Brant Advisors + CPAs, where he helps multi-national businesses and high-net worth foreign individuals structure their assets and build wealth in compliance with U.S. and foreign income, estate and gift tax laws. He can be reached at the firm’s Miami office at (305) 379-7000 or via email at info@bpbcpa.com.
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