IRS to Stop Sending Notices

  • Agribusiness
  • 2/10/2022

Welcome news! The IRS is suspending sending out certain notices. We go over the details.

The IRS issued Notice 2022-31 this week to indicate they will stop sending several notices including automatic collections notices, etc. that likely are wrong due to their large backlog of unprocessed tax returns and other tax information.

They also had indicated at the end of January that they will stop sending out CP-80 letters that indicates they received payments from the taxpayer without the corresponding tax return. We have seen or heard of hundreds of these letters being sent to farmers indicating that the IRS has not received Form 943 which summarizes the income tax paid during the year. The IRS indicates you can ignore this notice if you know you filed the return timely. The IRS acknowledges that these paper filed returns are likely sitting in a room somewhere unopened or processed (they did not say it in those exact words but that is my conclusion).

Here is a list of the major notices that will be suspended immediately:

  • CP501 – Balance Due – 1st Notice
  • CP503 – Balance Due – 2nd Notice
  • CP504 – Final Balance Due – 3rd Notice, Intent to Levy – Many of you may have gotten this notice due to the fact that IRS has ignored or not processed your original response to their notice CP501. This is good news that the IRS is suspending this notice andyou can now wait for the IRS to respond to your notice without having to call them. We are finding it is almost impossible to get through to the IRS via phone.

There are a few other notices being suspended related to request for income tax returns.

Note that you may still get a notice in the next week or two since it will take time for the IRS to clear up their computer systems. Congress also appears to be demanding that the IRS clears up its backlog before any more collections efforts are undertaken.

There was an article I recently read indicating the IRS is having a hard time finding administrative staff since their pay is only $25,000 per year. Since starting pay in our area for working at McDonalds is at least $16 per hours ($32,000 annualized), I can understand why they have a hard time getting new workers.

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

Experience the CLA Promise


Subscribe