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IRS Suspends Notices to Delinquent Filers of Some Returns

IRS Suspends Notices to Delinquent Filers of Some Returns

On March 22, 2022, the IRS announced it will temporarily stop sending written notices to certain entities that fall behind on filing obligations related to Forms 5500, 990 and others. The IRS usually mails these notices to tax-exempt or governmental entities in case of a delinquent return. The suspension does not relieve entities of any filing deadlines or obligations.

The IRS is currently experiencing a backlog of several million unprocessed returns due to the COVID-19 pandemic. This backlog involves returns filed by both individuals and entities. According to the IRS, the suspension will help avoid confusion when a filing is still in process.

Duration of Notice Suspension

The IRS will continue to assess its inventory of pending returns to determine when to resume mailing the suspended notices.

Meanwhile, some taxpayers and tax professionals may still receive the notices over the next several weeks.

Affected Notices

The suspension applies to these notices:

  • Reminder Notice About Your Form 5500-EZ or 5500-SF Filing Requirement
  • Form 940 Not Required—Federal, State and Local Government Agencies
  • First Taxpayer Delinquency Investigation Notice—Forms 990/990EZ/990N, 990PF, 990T, 5227, 1120-POL and 990/990EZ
  • First Delinquency Notice—Forms 5500 and 5500-SF
  • Second Delinquency Notice—Form 5500

Entities affected by the suspension should ensure their procedures for timely filing returns do not rely on any of these notices.

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