In its Exempt Organization newsletter published March 25, 2022, the IRS announced it will temporarily stop issuing delinquent return notices to tax-exempt and governmental entities. This move comes after the IRS came under pressure to suspend more delinquent returns and collection notices while working through its backlog of unprocessed returns.
This does not mean exempt organizations don’t have to file on time. It just means the IRS won’t be sending out late notices.
Delinquent return notices. Due to the COVID-19 pandemic, the IRS has a backlog of several million returns filed by individuals and entities. Due to the backlog, IRS computers have sent out delinquent return notices to taxpayers who have already filed. The IRS has stopped mailing these delinquent return notices to avoid further confusion for taxpayers who have filed a return that the IRS hasn’t yet processed.
Some taxpayers and tax professionals may still receive delinquent return notices during the next few weeks. Generally, the IRS said there is no need to call or respond to the notice if the return identified in the notice was already filed.
The suspended notices include reminders and first and second delinquency notices regarding Form 5500, Form 5500-EZ, Form 5500-SF, Form 990, Form 990EZ, and Form 990N.
If you have any questions regarding filing tax returns for exempt organizations or reinstating an exempt organization that has lost its 501c3 status or had its charter revoked due to failing to file, please get in touch with one of our business or tax attorneys at 937-223-1130 or Jsenney@pselaw.com