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Senators taking action as frustration builds over IRS backlog

IRS SHUTDOWN CNN 010319
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NORFOLK, Va. - People have been getting notices in the mail saying they didn't file their taxes when they actually have.

"The IRS was sending out these automatic notifications, frankly, just kind of scaring people," said Senator Mark Warner (D-Va.).

Warner said because the IRS is behind on finishing 2020 tax paperwork, it's likely the agency just hadn't seen the filings before the automatic letters were sent.

This is frustrating many people across the board and slowing the 2021 filing process. That's why a group of senators have called upon the IRS, once again, to make some big changes.

They said they want to know what relief the IRS is planning to give taxpayers, including if they will consider pushing back the April deadline.

"We need to, frankly, invest more in IRS technology, The computers are way outdated. We [also] need, frankly, additional personnel at the IRS," Warner said. "And three, the IRS needs to take a much more customer friendly approach."

If you received one of these letters, or get one in the coming weeks, the agency said generally you won't need to respond unless you think it's accurate.

The IRS said they've suspended more than a dozen letters, but Warner reiterates that if you have any issues, reach out to his office.

According to the IRS website, the suspended notices include:

Individual Taxpayer Notices
Notice/Letter NumberTitleDescription
CP80Unfiled Tax ReturnThis notice is generally sent when the IRS credited payments and/or other credits to a taxpayer’s account for the tax period shown on the notice, but the IRS hasn’t received a tax return for that tax period.
CP59 and CP759 (in Spanish)Unfiled Tax Return(s) - 1st NoticeIRS sends this notice when there is no record of a prior year return being filed.
CP516 and CP616 (in Spanish)Unfiled Tax Returns – 2nd NoticeRequest for information on a delinquent return as there is no record of a return filed.
CP518 and CP618 (in Spanish)Final Notice – Return DelinquencyThis is a final reminder notice when there is no record of a prior year(s) return filed.
 
CP501Balance Due – 1st NoticeThis notice is a reminder that there is an outstanding balance on a taxpayer’s accounts.
CP503Balance Due – 2nd NoticeThis notice is the second reminder that a there is an outstanding balance on a taxpayer’s accounts.
CP504Final Balance Due Notice - 3rd Notice, Intent to LevyThe IRS sends this notice when a payment has not been received for an unpaid balance. This notice is a Notice of Intent to Levy (Internal Revenue Code Section 6331 (d)).
2802CWithholding Compliance letterThis letter is mailed to taxpayers who have been identified as having under-withholding of Federal tax from their wages. This letter provides instructions to the taxpayer on how to properly correct their tax withholding.

Individual Taxpayer Notices

Business Notices
Notice/Letter NumberTitleDescription
CP259 and CP959 (in Spanish)Return DelinquencyIRS sends this notice when there is no record of a prior year return being filed.
CP518 and CP618 (in Spanish)Final Notice – Return DelinquencyThis is a final reminder notice that we still have no record of a prior year tax return(s).

Business Notices