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On February 9, 2022, the IRS announced that it is suspending more individual and business notifications that are usually sent when a taxpayer has not complied with filing requirements (IR-2022-31).

The IRS said it has "several million" individual and business returns that still have not been processed. Until the agency has worked through the backlog, the automatic notices will stop. In the meantime, the IRS will continue to assess the inventory to decide when to resume sending notices. "[O]ur efforts," the IRS noted, "are not limited to suspension of these additional letters and the possibility of similar actions going forward."

Some taxpayers will continue to receive notices but do not need to respond them, the IRS said. Taxpayers that receive a notice that they think is accurate, however, should address the situation as, for example, interest or penalties could continue to accrue on unpaid balances. The IRS may also continue issuing notices to particular taxpayers to resolve certain issues.

The following individual notices are temporarily suspended:

• CP80, Unfiled Tax Return
• CP59 and CP759, Unfiled Tax Return(s) — 1st notice
• CP516 and CP616, Unfiled Tax Returns — 2nd notice
• CP518 and CP618, Final Notice — Return Delinquency
• CP501, Balance due — 1st notice
• CP503, Balance due — 2nd notice
• CP504, Final Balance Due Notice — 3rd Notice, Intent to Levy
• 2802C, Withholding Compliance Letter

The following business notices are temporarily suspended:

• CP259 and CP959, Return Delinquency
• CP518 and CP618, Final Notice — Return Delinquency

Implications

Halting the automated notices should reduce taxpayer confusion until the IRS can work through its backlogs. Taxpayers receiving any of the notices listed previously should consult the announcement in determining what steps to take.

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