Taxpayers who owe money but haven’t filed a tax return will no longer receive automated collection notices sent by the Internal Revenue Service (IRS), the agency said in a statement.
Suspension is due to an enormous backlog of tax returns, which the agency is dealing with as it deals with the challenges posed by the coronavirus (COVID-19) pandemic.
The IRS warns that the collection letters it sends to taxpayers who have fallen behind in their tax returns’ processing may lead to further confusion.
According to IRS Commissioner Chuck Rettig, “Our efforts are not limited to suspending these additional letters and the possibility of similar actions in the future.”
This effort to reduce our inventory is ongoing and we have redirected and re-allocated resources throughout the IRS, as well as implemented innovative strategies.
The automatic notices, which include balance due notices and unfiled tax return notices, have been put on hold until the backlog is cleared up.
For the time being, the IRS is evaluating the inventory of prior year returns to determine when notices can be reinstituted.
These notices may still be sent to some taxpayers and tax professionals in the coming weeks. According to the IRS, there’s no need to call or respond to the notice because the IRS is processing returns as quickly as possible.
To avoid accruing interest and penalties, if you believe a notice is accurate, you should take action.
Monday, April 18, is the deadline for submitting a 2021 tax return and paying any taxes owed.
Because they are federal holidays, Washington, D.C. holidays affect everyone’s tax deadlines. The due date has been changed from April 15 to April 18 due to the District of Columbia’s Emancipation Day holiday.
The Internal Revenue Service (IRS) urges taxpayers to prepare a complete and accurate tax return by ensuring they have all the necessary documentation on hand. Accurate tax returns can help avoid delays in processing, refunds, and IRS notices from the government.
It assumes that the vast majority of taxpayers will submit their tax returns via computer. The fastest and safest way to file a correct tax return and receive a refund is to use electronic filing and direct deposit.
The majority of refunds are issued within 21 days, but some tax returns require additional review and may take longer to process than other returns. When a return contains errors, is incomplete, or is the victim of identity theft or fraud, this may be required.