The IRS "Notice" Nightmare continues...

IRS past due notices

In an early June post, I mentioned that the pandemic had shut down the IRS, but that they were beginning the process of slowly re-opening. One consequence of the shutdown was that payment and other notices that would have gone out did not go out. As the IRS ramps back up, these "backlogged" notices should have started to go out as early as July 15. One estimate states that there may be as many as 20 million backlogged notices going out.  

Unfortunately, many of these notices will reflect due dates that have already passed. Rather than revise the backlogged notices before sending, the IRS decided to take the path of least resistance and send the notices out "as is." They are, however, inserting a separate notice explaining why the due dates may have already passed and telling taxpayers "not to worry," but get in touch with the IRS about their matter. I am sure that will be comforting to Mr. & Ms. Joe Taxpayer.

See Jason Morton's LinkedIn post for a much more detailed discussion of all the potential problems caused by these delinquent notices.

The takeaway is that, if you receive a notice from the IRS, be sure to review all inserts before taking any action. As always, your best course of action is to make contact with the IRS sooner, rather than later, once you receive any notice. If we can be of assistance, please call. 

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John A. Cocklereece, Jr.

John Cocklereece concentrates his practice on property tax appeals, business law, tax controversies, and estate planning and administration.
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