Have you received a letter from the IRS stating that you owe taxes even though you paid it? Or that you have an unfiled return even though you’ve filed it?
You’re not alone. The IRS says it is aware of the problem and is assisting taxpayers by suspending certain automated notices.
The IRS is entering the 2022 filing season with “several million original and amended returns filed by individuals and businesses that have not been processed due to challenges of the historic pandemic.”
So while their payments and tax returns are caught in this backlog, some taxpayers may have been receiving automated notices demanding payment or to file past due returns.
What should you do if you receive a tax due or unfiled tax return notice?
If you believe the notice is incorrect, the IRS states “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.”
“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. For example, the IRS cautions people with a balance due that interest and penalties can continue to accrue. In addition, IRS employees may in select circumstances issue notices to particular taxpayers to resolve specific compliance issues.”
Finally, not receiving a notice doesn’t mean that taxpayers shouldn’t pay their past due taxes or file past due returns even if they don’t receive a notice. “The IRS encourages those who have a filing requirement and have yet to file a prior year tax return or to pay any tax due to promptly do so as interest and penalties will continue to accrue.”
Suspended notices
While the IRS clears its backlog, the following notices will be suspended. However, the IRS cautions that “[s]ome taxpayers and tax professionals may still receive these notices during the next few weeks.”
Individual Taxpayer Notices
| Notice/Letter Number | Title | Description |
|---|---|---|
| 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. |
Business Notices
| Notice/Letter Number | Title | Description |
|---|---|---|
| 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). |
Source: IR-2022-31