Automated tax notices no longer being sent by IRS. What does it mean if you got one?
Document telling people they haven’t filed their tax returns have already started going out, but getting one may not mean that you owe.
That’s because the IRS may not have processed your returns yet as it faces a backlog that’s millions of filings deep.
To try to eliminate confusion, the agency said it will stop mailing more than a dozen documents this tax season. Among the suspended documents are “automated collection notices” — letters tell taxpayers they owe additional taxes but haven’t filed their returns, which may have been sent prematurely.
The notices that have been suspended include those marked: CP80, CP59, CP759, CP516, CP616, CP518, CP618, CP501, CP503, CP504, 2802C, CP259, CP959, CP518 and CP618.
So what if you get one of the letters?
“Generally, there is no need to call or respond to the notice as the IRS continues to process prior year tax returns as quickly as possible,” the IRS said in a Feb. 9 news release. “However, if a taxpayer or tax professional believes a notice is accurate, they should act to rectify the situation for the well-being of the taxpayer.”
No matter the scenario, one expert recommends responding if you receive the letters. If you don’t, you could get more notices when the automated system starts back up again, said Edward Karl, vice president of taxation for the American Institute of Certified Public Accountants, according to CNN Business.
The IRS said the suspension of the notices is temporary as it tries to address its backlog. The move comes at a busy time for the agency.
“Our employees continue to expend every effort to balance a confluence of multiple, unprecedented demands — including successfully starting the filing season, working our inventory of unprocessed tax returns as well as looking for additional ways to minimize burden for taxpayers, tax professionals and businesses,” IRS commissioner Chuck Rettig said in the Feb. 9 release.
Though some notices have been suspended, the IRS warns people who do owe taxes “that interest and penalties can continue to accrue” and that some people facing compliance issues could still receive notices. Anyone who hasn’t filed 2020 tax returns is urged to do so as soon as possible.
This story was originally published February 14, 2022 at 8:48 AM with the headline "Automated tax notices no longer being sent by IRS. What does it mean if you got one?."
