IRS Stops Sending Out Horrifying Tax Notices But You’re Still Liable For Penalties

The wacky tax season of 2022 continues to throw everyone more unexpected turns. Due to a backlog of tax returns, the IRS has decided to discontinue issuing some reminders to taxpayers, including letters warning of unfiled tax returns or delayed tax payments.

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While some people will be relieved to no longer receive frightening IRS letters, others who owe taxes or are obliged to file a previous year’s tax return may remain oblivious of their status as interest and penalties on their tax debt amount, reports Cnet.com.

What is causing this? Due to an incomplete tax return or payment, the IRS does not want to confuse taxpayers with communications that may be outdated or erroneous. Despite the fact that collection notifications will cease, taxpayers who owe the IRS money or returns must still comply with their obligations.

We’ll explain which notices have been suspended, as well as what this implies for taxpayers this year. Here’s why your tax refund might be late this year and how to track your tax refund after you’ve filed your return for additional information on the 2022 tax season.

Why is the Internal Revenue Service (IRS) failing to mail certain tax notices?

The COVID-19 pandemic, combined with IRS personnel shortages, has resulted in a record volume of unprocessed tax returns and payments. The IRS had been issuing some erroneous automated letters as a result of the processing backlog. For example, IRS notifications claiming late tax returns or past-due sums were delivered to taxpayers whose tax returns or payments had not yet been processed.

The IRS stated on January 27 that it was suspending CP80 notices, which alert people about unfiled tax returns. A bipartisan coalition of Senators and Representatives called on the IRS to end automated collection techniques until at least 90 days after the April 18 tax filing deadline. On February 9, the IRS declared that the 15 notices listed below would be suspended. The letters will be put on hold until the IRS backlog is cleared.

What kinds of automated letters have been stopped?

Typically, the IRS sends taxpayers automatic collection notices if they owe money or haven’t completed a required return. However, to avoid misunderstanding, the IRS is delaying the distribution of more than a dozen letters until the backlog of returns is cleared.

The IRS is suspending the following individual taxpayer notices:

  • CP80
  • CP59/CP759
  • CP516/CP616
  • CP518/CP618
  • CP501
  • CP503
  • CP504
  • 2802C

 

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