Mailing of IRS Notices Delayed Due to Ongoing Pandemic
Due to the ongoing pandemic the IRS experienced a delay in mailing some notices that were to be issued between Nov. 9 and Nov. 23. As a result, your clients may receive a notice from the IRS with a notice date or due date that has already passed. However, some of these notices will include Notice 1052-D, “Important! You Have More Time to Respond to the Enclosed,” giving the taxpayer more time to respond to the original notice.These notices will be issued by Jan. 8, 2021.
If your client receives a delayed notice, advise them to read all the information to determine the actions to complete and when. Notice 1052-D explains why the notice was delayed and, more importantly, provides a new date by which to pay tax owed or to respond if not in agreement with changes made by the IRS on the tax return. If your clients pay by the due date listed on the Notice 1052-D, they can avoid owing additional interest and failure-to-pay penalties, if applicable.
Notice and demand letters with a balance due will have an insert identifying Jan. 29, 2021 as the new date to make payment.
Math Error notices required by section 6213(b)(1) will have an insert that states the taxpayer will have until the new date of March 9, 2021 to dispute the changes.
Only notices considered notice and demand, like the CP14, 21, 161, 210, 220, etc., and math error, required by section 6213(b)(1), like the CP11, 102, 131, etc., were mailed with Notice 1052-D. Your clients should refer to their Notice 1052-D for the correct balance due date and the enclosed balance due notice for the correct balance due amount.
Also, some taxpayers will not receive the CP521 installment agreement payment reminder notice normally sent in November and December. These will resume in January. Your clients should continue to make their recurring payments to keep installment agreements in effect.
Taxpayers now have the option to view their notices electronically through their online account. This new option gives taxpayers immediate access to specific IRS notices instead of waiting for them to arrive by mail. In addition, taxpayers have direct access to payment options and can check their account balance. Note: The new due date shown in the Notice 1052-D will not be reflected on their online account.
Appropriate programming will be implemented to account for the additional grace period with respect to failure to pay, failure to deposit and interest. Your clients’ accounts will systemically adjust with no additional actions required by them or IRS employees. This means if your client makes their payment by Jan. 29, 2021, the penalty and interest will only be computed to the notice date and amounts stated on the late notice will be valid.
For more information, visit the IRS website.