Government officials had 6.7 million unprocessed individual returns on December 4, 2021.
Millions of amended returns have not yet been processed into this total.
During the Covid-19 pandemic, the agency’s budget and workforce shrank, causing a backlog.
The IRS is temporarily halting letters and automated notices to taxpayers in an effort to expedite this year’s tax season.
There are two types of notices for unfiled tax returns: the first notice is called CP80, and the second notice is called CCP516 and CCP616. The final notice is called CCP518 and CCP618.
Withholding Compliance letter CP259 and CP959: Return Delinquency notice CP501, 2nd Notice CP503 and 3rd Notice CP504: Final Balance Due Notice — 3rd Notice, Intent to Levy 2802C
Notice of Delinquency Return: CP518 and CP618
Announcing that “interest and penalties will continue to accrue” for those who have unpaid filing requirements or owe taxes despite the suspension of notices on February 9, 2022.
“If you owe the IRS, the suspension of a notice does not equal a suspension of payment,” said Erin M. Collins, a National Taxpayer Advocate.
These penalties and balances will accrue interest every day.
In the event of noncompliance, what are my options?
In the year 2022, the due date for submitting tax returns for the preceding calendar year will be April 18, 2022.
Taxpayers who fail to file their returns on time face hefty fines from the Internal Revenue Service.
For each month your return is late, you may be subject to a “failure-to-file penalty,” which is typically 5 percent of your unpaid taxes but may increase to 25 percent.
To avoid owing the full amount of tax you owe if your return is more than 60 days late, you must pay either a $435 penalty or 100% of the tax due.
A CP80 notice may be sent to you if you miss the deadline and have tax credits on your account.
Your refund could be gone if you don’t file your tax return within three years of the due date.
Keep yourself up to date with current events.
Suspending the notices has many taxpayers worried that they won’t be informed of any errors, resulting in penalties and fees being accrued without their knowledge.
Staying on top of your tax return is the best way to avoid accruing penalties and fees.
On the “Where’s My Refund?” page, you can check the status of your tax return.
The page is updated every day between midnight and 6 a.m. by the Internal Revenue Service.
There are four possible reasons why your tax refund may take longer to arrive in 2022, as well as five ways to increase your tax refund.