According to the House Ways and Means Committee Chairman, Richard Neal, the IRS had 12 million pieces of unopened mail during the summer of 2020. As the IRS still works through massive piles of mail and tax returns, 11 million taxpayers are receiving CP11 notices for unpaid balances related to stimulus payments, not including any other tax notice issues. Many taxpayers are receiving notices even after responding or writing a check to the IRS. Refunds that used to take 21 days are taking 120 days - per IRS operations reports. Richard Neal recognized that these notices can impose unnecessary stress and asked that the IRS halt sending notices. Still, the automated notices continue to be issued while responses and phone calls continue to be unanswered. Our team would like to help you understand what to do next.
Currently Butrica Ployd & Associates is doing everything we can to make this process easier for you. When you engage us to assist you with your notice, we will help you asses the problem and better understand how to resolve the issue. In addition, a member of our staff will prepare a response letter for you to send to the IRS. However, the IRS is overwhelmed with mail and our practitioner line is unreachable, so our assistance is limited to providing letters and helping you understand how to discuss the issue with an IRS agent.
In this moment, individuals have a 1 in 50 chance of reaching the IRS at 800-829-1040. Still, practitioners cannot reach the IRS at all. Your best first steps are to call the number provided on the letter and discussing the issue first with an agent yourself. Here a few more steps to take if you’ve received a Notice from the IRS.
Step 1 Read Carefully
Your notice or letter should explain the reason for issue and give you instructions on how to contact the IRS.
Step 2 Respond
Respond by specific date to minimize additional penalty or interest + preserve your appeal rights. If you need help with your response, you can engage Butrica Ployd to provide more in-depth assistance.
For CP11 Notices related to Economic Impact Payments (Stimulus)
Most of these issues are caused from mismatches in the IRS system on payments sent to you versus what you reported on your tax form. This can be a result of unreceived payments by mail, missed deposits, or IRS error.
First, review your notice or your online IRS account to determine exactly what stimulus amounts the IRS says that you received. Compare that amount with your bank statements (around March to July of 2020 AND January of 2021). Then, contact the IRS in writing or call them at 800-829-0922.
If you agree with the IRS that what you reported to us was incorrect and upon looking back in your bank statement and you find that you did receive payments equaling what the IRS is reporting, then follow the instructions to pay the money back. Pay online or mail a check or money order with the attached payment stub. You can pay online now at www.irs.gov/payments.
If you disagree, you must contact the IRS within 60 days. Make sure that you review the notice instructions on page 2 of the notice.
If you want to check your online IRS account, follow these instructions:
Here at Butrica Ployd & Associates, we are doing our best to assist our clients in these issues. Unfortunately, even with the IRS being as behind as it is, sometimes the best course of action is to call the IRS directly. Policies and Notices are changing rapidly so confusion is understandable, and we will assist you the best way we can. Regarding the Economic Stimulus payments, calling the IRS at various points of day is the best course of action until you can speak with a representative. For other notices, we will assist you in identifying the problem and sending you the proper paperwork for you to send to the IRS.
While the IRS has indicated that no further action is necessary, they continue to send progressively more alarming tax notices while response letters go unprocessed. In this environment, you may need to contact the IRS any way possible - typically by sending a letter and calling each week until your reach an agent. If you do send a letter, request tracking and print a copy of the report once the package arrived.
Sean M. Godwin, MBA