What to do should you obtain a ‘lacking tax return’ discover from the IRS

The IRS has warned about “challenges” this tax season, and a slew of automated notices are already inflicting misery for filers.

Some taxpayers who despatched final 12 months’s return and paid their stability have acquired a CP80 notice saying they might lose their credit score for cost if they do not file their 2020 tax return.

Nonetheless, the company mentioned many of those notices are due to their backlog of unprocessed returns.

“We’ve got already determined to droop notices in conditions the place we now have credited taxpayers for funds however haven’t any document of the tax return being filed,” the IRS mentioned in a statement. “In lots of conditions, the tax return could also be a part of our present paper tax stock and easily hasn’t been processed.” 

However these notices have already alarmed recipients, consultants say.

“Earlier than Covid, we very not often noticed these notices,” mentioned John Sessa, a Bloomfield, New Jersey-based CPA on the agency in his identify. “I’ve had two shoppers get one prior to now week.” 

Whereas the computer-generated letter asks you to refile, the agency’s website now says explicitly to not resubmit 2020 returns. 

“I’d not refile,” mentioned Sessa. “That is simply going to trigger extra of a delay.”

Nonetheless, you will need to double-check the credit score particulars are correct, and there are data of submitting the return, together with proof of cost. 

You’ll be able to verify the IRS acquired your cost or return, by downloading free IRS transcripts out of your on-line account.

Whereas an account transcript will present funds, the return transcript ought to present the submitting receipt, even when it hasn’t been processed.

Certainly, there have been 6 million unprocessed particular person tax returns as of Dec. 31, according to the IRS. Nonetheless, the company this week re-assigned 1,200 staff to sort out the backlog. 

Whereas there are fewer workers for points, some consultants nonetheless recommend contacting the IRS to resolve CP80 notices about lacking tax returns.

“It is crucial to get on the cellphone with the IRS,” Muhammad mentioned. “And I do know that is an enterprise since you may sit for 2 hours.” 

Nonetheless, when you attain an agent, he suggests explaining you already filed and faxing over confirmations, resembling Form 9325 for digital filings or your paper path of return receipts from licensed mail, for the reason that company would not settle for e-mail.  

“I’ll fax one thing to them whereas we’re on the cellphone, look ahead to them to obtain it and ask them to make notice on the file,” he mentioned. 

If you cannot attain somebody by cellphone, it’s possible you’ll contact the Taxpayer Advocate Service or make an appointment along with your local IRS office, Muhammad steered, however these locations can also be delayed.

“The worst factor you are able to do is ignore one thing or assume it is a mistake,” he added. “I’ve simply discovered over time that it is higher to have your geese in a row.”

Did you obtain a CP80 discover a couple of lacking tax return? If that’s the case, I’d love to talk with you for a narrative. Please e-mail me at kate.dore@nbcuni.com.