The IRS announced that they will be suspending more notices this week, focused on those usually sent to tax-exempt organizations. These notices are typically sent when the IRS is missing a return or other information. This announcement came earlier in the week and stems from the millions of unprocessed returns that still have not been processed, as many well-known tax professionals and agencies are pushing for even more notices to be placed on hold.
It is believed by the IRS that the suspension of these notices will help in eliminating a lot of confusion during the filing process. The IRS also stated that they will be assessing the inventory of the backlog to help them determine when the notices will resume being mailed out. As of now, when this will happen is still unknown, however, it does appear it will be a lengthy period of time as the IRS stated, “Due to the historic pandemic, the IRS hasn’t yet processed several million returns filed by individuals and entities… The suspension of these notices will help avoid confusion when a filing is still in process.”
Suspended Notices
Congress has reached out to the IRS to ask them if they will be suspending any more notices, and if they are why they haven’t already done so. Congress also asked the IRS for a timeline of when these suspensions will end. For now, we do not know the extent of notices to be placed on hold, but we will continue to follow along.
As of now the suspended notices include;
- CP214, Reminder Notice About Your Form 5500-EZ or 5500-SF Filing Requirement
- CP217, Form 940 Not Required — Federal, State, and Local Government Agencies
- CP259A, First Taxpayer Delinquency Investigation Notice — Form 990/990EZ/990N
- CP259B, First Taxpayer Delinquency Investigation Notice — Form 990PF
- CP259D, First Taxpayer Delinquency Investigation Notice — Form 990T
- CP259F, First Taxpayer Delinquency Investigation Notice — Form 5227
- CP259G, First Taxpayer Delinquency Investigation Notice — Form 1120-POL
- CP259H, First Taxpayer Delinquency Investigation Notice — Form 990/990EZ
- CP403, First Delinquency Notice — Form 5500 or 5500-SF
- CP406, Second Delinquency Notice — Form 5500
As well as the notices we previously reported on.
If taxpayers receive this letter within the next few weeks, there is generally no need to respond as long as your return is filed on time. This is not the first time notices were put on hold, and will likely not be the last with so much advocacy behind the requests.
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