IRS temporarily stops mailing some automated collection notices

 

Note: The IRS is not mailing some normal notices to Taxpayers and their tax lawyer because the IRS is behind in processing millions of original and amended tax returns. This problem started in 2020 with COVID-19 and has continued because the IRS cannot catch up with opening and processing mail. Nevertheless, please contact me if you received any IRS notices or if your returns have not been processed.

Ron Cappuccio

(856) 665-2121

Here is the IRS Notice as published by Thompson Reuters today:

IR 2022-31, 02/10/2022

In a news release issued February 10, the IRS announced it will temporarily stop mailing some automated collection notices.

Which automated collection notices are suspended? The IRS will temporarily stop mailing the following individual and business automated collection notices:

• CP80, Unfiled return notice
• CP59 and CP759 (Spanish), Unfiled tax return(s) 1st notice
• CP516 and CP616 (Spanish), Unfiled tax return(s) 2nd notice
• CP518 and CP618 (Spanish), Final notice, return delinquency
• CP501, Balance due 1st notice
• CP503, Balance due 2nd notice
• CP504, Final balance due 3rd notice, Notice of Intent to Levy
• 2802C, Withholding compliance letter
• CP259 and CP959 (Spanish) Business return delinquency
• CP518 and CP 618 (Spanish) Final notice – business return delinquency

Why suspend mailing automated collection notices? The IRS has several million original and amended returns filed by individuals and businesses that have not been processed. According to the News Release, the IRS is suspending some automatic notice mailings to help avoid confusion for taxpayers and tax professionals.

“IRS employees are committed to doing everything possible with our limited resources to help people during this period,” said IRS Commissioner Chuck Rettig. “We are working hard, long hours pushing creative paths forward in an effort to be part of the solution, rather than the problem.”

Some taxpayers may still receive notices. Some taxpayers and tax professionals may still receive automated collection notices during the next few weeks. Generally, there is no need to call or respond to the notice.

However, if a taxpayer or tax professional believes a balance due notice they receive is accurate should look into resolving the tax debt because interest and penalties can continue to accrue.

Note: The IRS will automatically approve an installment agreement for taxpayers with tax debt below a certain amount. For more information about installment agreements click here.

In addition, IRS employees may, in select circumstances, issue notices to certain taxpayers to resolve specific compliance issues.

Why not suspend mailing all notices? According to the news release, the IRS doesn’t have the authority to stop mailing all notices because the tax code requires many notices to be issued within a specific time frame.