By Denise Felber, CPA, Tax Partner
In conformance with CDC guidelines, the IRS employees have been working remotely and/or have been limited in time spent in the office due to social distancing. This has generated a HUGE backlog of correspondence, paper-filed returns, tax payment deposits and matching issues for tax payments.
In a release issued February 17, 2021, the IRS has 6.7 million returns in the pipeline. They are currently working on returns received during the summer of 2020. Do not void your tax payment; that action will lead to more correspondence.
In addition to processing returns, the IRS has been delayed in mailing notices. You may receive notices with past due payment and response dates. You cannot ignore the notices though they may not be correct. The IRS will work through the responses in the order received. There will be delays due to the volume; follow-up correspondence or calls are not suggested.
As a CPA firm, we have seen a dramatic increase in notices; most of them are incorrect. We will respond on your behalf and then the waiting game begins. It is frustrating for you and us-we did our jobs. The IRS has been delayed with its portion of the process. One more COVID-19 headache we did not anticipate in planning the 2020 filing season (for 2019 returns).