By: Jacoby Shade, Staff Accountant
Tired of notices from the IRS? Well good news! After much pressure from Congress, the AICPA, and other accounting organizations, the IRS is granting taxpayers, and their CPAs, some relief.
As of February 9, 2022, the IRS has suspended the mailing of certain automated tax notice letters. The IRS will stop mailing automated collection, notices, balance due notices, and unfiled return notices.
In addition to notice suspension, the IRS is increasing efforts to process the pile-up of prior year original and amended returns. Currently the IRS has an unprecedented backlog of unprocessed returns, leading to many incorrect notices being received by the taxpayers. For more information regarding the IRS backlog see our January 20, 2021, article.
This temporary suspension of automatic notices will help reduce the amount of unnecessary communication with the IRS. The IRS will continue to assess the backlog to determine the appropriate time to resume issuing notices. The AICPA and the IRS have been in discussion on further recommendations to help relieve the backlog.
It is expected that some taxpayers will still receive letters as the system is being halted. Generally, there is no need to call or respond to the notice. However, if the notice is accurate, it is important to pay any tax due as penalties and interest will continue to accrue during the suspension period. This suspension is not a restriction of access to the IRS.
List of Suspended IRS Notices for Individuals and Businesses:
For Individuals:
- CP80 – Unfiled Tax Return
- CP59 – Unfiled Tax Return(s) – 1st Notice
- CP516 – Unfiled Tax Return(s) – 2nd Notice
- CP518 – Final Notice – Return Delinquency
- CP501 – Balance Due – 1st Notice
- CP503 – Balance Due – 2nd Notice
- CP504 – Final Balance Due Notice – 3rd Notice, Intent to Levy
- 2802C – Withholding Compliance Letter
For Businesses:
- CP259 – Return Delinquency
- CP518 – Final Notice – Return Delinquency
If you have any questions regarding notices from the IRS, please contact a Blue & Co. advisor.
