Don’t Panic: Notices from IRS of Unfiled Returns (CP-80)
Taxpayer Filed 2020 Tax Return; Receives IRS Notice that Return Not Filed
The IRS has a large backlog of unprocessed individual tax returns (some reports estimate over 6 million). However, if you paid tax, the IRS has processed the payment (check or e-payment). This has led to many taxpayers receiving erroneous notices from the IRS (CP-80) stating: “Please file today. Send your signed tax return to the address shown on the top of your notice.”
Taxpayers are also fearful because the notice also states, “If you don’t file your return or contact us, you may lose this credit. The Internal Revenue Code sets strict time limits for refunding or transferring credits.”
IRS Notice erroneously states: “Please file today. Send your signed tax return to the address shown on the top of your notice.”
IRS Suspending some taxpayer notices
This is the second notice this year that has caused taxpayers distress. After the IRS released a statement indicating that letters 6419 may be incorrect, the IRS released a statement providing an update to taxpayers and letting them know that they will stop issuing some notices. Although they did not cite the notice by name, they did describe the scenario outlined in this article.
We [IRS] have already decided to suspend notices in situations where we have credited taxpayers for payments but have no record of the tax return being filed. In many situations, the tax return may be part of our current paper tax inventory and simply hasn't been processed. Stopping these letters — which could have otherwise been sent to thousands of taxpayers — will help avoid confusion.
As per the IRS: “As part of this ongoing effort and balancing the importance of protecting the interests of tax administration, the IRS has also been taking important steps to modify our operations and provide additional taxpayer relief. These efforts include suspending issuance of certain automated notices and related actions. We are looking at the suggestions that have come in, and we will continue to modify and adjust our efforts going forward to help taxpayers and the tax community. For example, we have already decided to suspend notices in situations where we have credited taxpayers for payments but have no record of the tax return being filed. In many situations, the tax return may be part of our current paper tax inventory and simply hasn't been processed. Stopping these letters — which could have otherwise been sent to thousands of taxpayers — will help avoid confusion.”
Mostly concerns mailed tax returns
The IRS has consistently recommended to e-file returns and to ensure speedy refunds. As always, TFX e-files tax returns whenever possible. The backlog mostly concerns mailed tax returns which require manual processing.