After House Ways and Means Chairman Richard Neal strongly urged the IRS to stop mailing balance due notices to taxpayers due to a mail backlog at the IRS, the Service has announced they will be temporarily suspending the mailing of three notices. The CP-501, CP-503 and CP-504 follow-up notices sent to taxpayers who have a balance due will be temporarily paused as the IRS continues to reduce the backlog of unopened mail caused by the global health crisis.
The temporary adjustment is being made to lessen the confusion that taxpayers are facing, because some have sent payment to the IRS, but are still receiving balance due notices as their payment sits unopened in the IRS mail backlog. Payment sent to the IRS will be credited to accounts on the date received rather than the date processed. Taxpayers should not cancel their checks and should make funds available so the IRS can process payments in order to avoid potential penalties and interest. Bad check relief will also be provided for checks received between March 1 and July 15 due to the delay in processing.