On Friday, March 25, 2022, the IRS announced that it will suspend sending the notices that they generally mail to tax-exempt organizations resulting from what its systems believe is the late filing of tax returns. The IRS explained that the suspension of notices results from it not yet processing millions of tax returns, many of which were timely filed, and other pieces of mail, resulting from erroneous notices.
The IRS’ admission of unprocessed returns filed during the pandemic, as well as erroneous notices is not a surprise to us and, many of you, who have received erroneous notices. If you received such a notice, you know how difficult it has been for either you or Withum to get a correction, abatement, or someone at the IRS to answer the phone. The suspension of notices will help avoid confusion resulting from automatically triggered notices when a timely filed return is still in process.
The IRS stated that it would continue to evaluate its inventory of delinquent returns and other mail and determine when it will be appropriate to resume sending notices. While some taxpayers and tax preparers may continue to receive notices over the next few weeks, there is no need to call or respond if the return was timely filed.
Notices suspended relate to Form 990 and other forms in the 990 series (990-N, 990-EZ, 990-PF, and 990-T). Remember, Form 990 and most 990 series forms are, generally, due the 15th day of the 5th month (May 15th for a calendar year-end) following an organization’s year-end. Note that Form 990-Ts filed by pensions and individual retirement accounts are due the 15th day of the 4th month (April 15th for a calendar year-end) following year-end.
Authors: Rich Ruvelson, JD, Principal | [email protected] and Nilmary Flores, CPA | nflores@withum.com
Contact Us
If you have questions about a notice received, or any questions related to the filing of your organizations’ return, please contact a member of Withum’s Not-For-Profit and Education Services Team.
