IRS suspends some automated notices due to backlog
IRS’ backlog of paper returns to be processed has increased since the COVID-19 pandemic began. Meanwhile, taxpayers have continued to receive automated notices, sometimes for unclear reasons.
Now, IRS says it has temporarily stopped issuing some notices. For example, the Service recently suspended these business notices:
- CP259, Return Delinquency (and CP959 in Spanish), and
- CP518, Final Notice – Return Delinquency (and CP618
in Spanish).
The CP259/CP959 automated notices go out when IRS has no record of a prior year return being filed. IRS sends the CP518/CP618 as a final reminder that it still has no record of a prior year tax return.
The suspension on automated notices also applies to IRS correspondence with individual taxpayers. Such notices include the CP80, Unfiled Tax Return, and the CP501, Balance Due — 1st Notice.
Behind on employment tax returns
In 2021, a Treasury Inspector General for Tax Administration (TIGTA) audit revealed that, at the end of 2020, IRS still needed to process millions of employment tax returns and other business returns.
As noted in the TIGTA report, the backlog got started when the pandemic hit. Early on, IRS pushed certain filing deadlines back by three months to July 15, 2020.
The problem still looms in 2022, with frustration growing as some CFOs simply want to receive tax credits offered to them by COVID-related laws. They included the:
- Families First Coronavirus Response Act
- Coronavirus Aid, Relief, and Economic Security Act, and
- American Rescue Plan Act.
At least now, with some automated notices on hold, confusing communication initiated by IRS should let up.
But CFOs reaching out for answers and conclusions from IRS may still have to wait.
Free Training & Resources
Further Reading
IRS has announced some inflation-adjusted dollar amounts you’ll need if your benefits package includes tax-favored health plans. F...
New York employees will see their maximum annual Paid Family Leave (PFL) contribution rise to $451.81 in 2027, up from $411.91 in 2026. ...
After several years of volunteer work, three individuals filed a lawsuit under the Fair Labor Standards Act (FLSA), saying they should have...
With tax year 2024 Forms W-2 out the door, it’s time to turn your attention toward the changes IRS has made for TY 2025 forms. The IRS...
Gov. J.B. Pritzker signed HB 4844, which requires Illinois employers with more than 25 employees to pay workers their regular rate of pay f...
New Jersey’s Employer Response Portal for unemployment separation reporting is now live, under P.L. 2022, c. 120 (S2357). Employer...