With all the unprecedented amount of significant news coming in every day, it’s very reasonable that the subject of this blog article would escape the notice of most taxpayers in America. For that reason, we’re helping to get the notice out that, as of August 21, 2020, the IRS would suspend nonpayment tax notices for the purpose of being able to handle the backlog of COVID-era physical tax-related mail coming into their Treasury offices.
Their notice as of August 21st reads as follows:
“The IRS has suspended the mailing of three notices – the CP501, the CP503 and the CP504 – that go to taxpayers who have a balance due on their taxes. Although the IRS continues to make significant reductions in the backlog of unopened mail that developed while most IRS operations were closed due to COVID-19, this temporary adjustment to processing is intended to lessen any possible confusion that might be associated with delays in processing correspondence received from taxpayers.
The IRS is taking the step to avoid confusion for taxpayers who previously received a balance due notice (CP14) and mailed a payment to the IRS; however, that payment may still be unopened. The CP501, the CP503 and the CP504 are follow-up notices are typically automatically sent to taxpayers who do not respond to the CP14. These automatic follow-up notices will be temporarily stopped until the backlog of mail is reduced. The IRS will continue to assess the mail inventory to determine the appropriate time to resume the follow-up notices. However, taxpayers who have received but not yet responded to a CP14 balance due notice are encouraged to promptly respond.”
What this essentially does is creates a delay of convenience for those who owe money for their taxes. The reason for this came as of the tax season extension to July 15th, which was a response to the COVID-19 pandemic and its influence on the conventional tax season in Spring. Between the times the extensions were made official, the original deadlines for tax revenue coming in and all the complications in bringing back office workers at the IRS, themselves unable to work onsite due to lockdown procedures. This will help reduce unnecessary stress by temporarily ceasing one more demand at a time when meeting obligations is much more difficult than usual, but it should be stated for clarity that money to the IRS will still be due and new deadlines for those will come in time.
For more information on the official IRS statement on this, see https://www.irs.gov/newsroom/irs-temporarily-stops-mailing-notices-to-taxpayers-with-balances-due.