IRS suspends notices to tax-exempt organizations

The Internal Revenue Service is suspending the issuance of a number of notices it usually mails to tax-exempt organizations and governmental entities when it’s missing their tax returns, citing the pandemic and the IRS’s own backlog of unprocessed tax returns and correspondence.

The announcement Friday by the IRS’s Exempt Organization unit acknowledged that the IRS hasn’t yet processed several million tax returns filed by individuals and entities.

“The suspension of the notices will help avoid confusion when a filing is still in process,” said the IRS. “The IRS will continue to assess the inventory of pending returns to determine the appropriate time to resume mailing these notices. Some taxpayers and tax professionals may still receive the notices during the next few weeks. Generally, there is no need to call or respond to the notices as long as the return was filed timely.”

The IRS headquarters in Washington
The IRS headquarters in Washington.
Andrew Harrer/Bloomberg

The announcement came after the IRS, under pressure from lawmakers and tax and accounting groups, agreed to suspend other types of automated tax notices for individual taxpayers last month, including collection notices, balance due notices and unfiled tax return notices (see story). But Congress and a coalition of tax and accounting groups including the American Institute of CPAs and the National Association of Tax Professionals, are still pushing the IRS to expand the list of suspended notices (see story).

The suspended notices for tax-exempt and governmental entities include:

Number
Name
CP214
Reminder Notice About Your Form 5500-EZ or 5500-SF Filing Requirement
CP217
Form 940 Not Required – Federal, State, and Local Government Agencies
CP259A
First Taxpayer Delinquency Investigation Notice – Form 990/990EZ/990N
CP259B
First Taxpayer Delinquency Investigation Notice – Form 990PF
CP259D
First Taxpayer Delinquency Investigation Notice – Form 990T
CP259F
First Taxpayer Delinquency Investigation Notice – Form 5227
CP259G
First Taxpayer Delinquency Investigation Notice – Form 1120-POL
CP259H
First Taxpayer Delinquency Investigation Notice – Form 990/990EZ
CP403
First Delinquency Notice – Form 5500 or 5500-SF
CP406
Second Delinquency Notice – Form 5500
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