Despite the Pandemic, the IRS Will Resume Sending Balance-Due Notices to Taxpayers

The IRS announced that they are sending 500 series of balance-due notices to taxpayers after they were paused in May because of the pandemic.

Because of a backlog of notices, due to the IRS furloughing employees, the IRS temporarily suspended the 500 series this past spring.

There are three, different types of 500 series notices:

• The CP501 notice alerts individual taxpayers that they still have a balance due and what their options are
• The CP503 alerts them that the IRS hasn’t heard from them and they may be subject to a lien if they don’t pay.
• And the CP504 alerts taxpayers that they must pay their balances immediately or possibly face a levy of their state income tax refunds.

Taxpay Relief is Available

Taxpayers who are impacted by the pandemic or other circumstances may qualify for relief from penalties due to reasonable cause, if they made an effort to comply with the requirements of the law, but were unable to meet their tax obligations, due to facts and circumstances beyond their control. Taxpayers should call the toll-free number on their notice to request penalty relief due to reasonable cause, if they feel they qualify and have the necessary supporting documentation. More information on reasonable cause relief is available at IRS.gov. If you have questions, please contact your Mize CPAs Inc. tax professional.