It’s been a crazy year for everyone. Unfortunately, that includes the IRS too. Evidently the IRS hasn’t been able to process the tax payments they are receiving in a timely manner and/or didn’t update their computers to reflect that the deadline to pay 2019 taxes was extended to 7/15.
What did they IRS do instead? They recently mailed out countless notices to taxpayers telling them they owe interest and late payment penalties on their 2019 taxes even if all the taxes owed were paid by 7/15. According to the IRS at: https://www.irs.gov/newsroom/irs-temporarily-stops-mailing-notices-to-taxpayers-with-balances-due:
IRS temporarily stops mailing notices to taxpayers with balances due
August 21, 2020
The IRS has suspended the mailing of three notices the CP501, the CP503 and the CP504 that go to taxpayers who have a balance due on their taxes. Although the IRS continues to make significant reductions in the backlog of unopened mail that developed while most IRS operations were closed due to COVID-19, this temporary adjustment to processing is intended to lessen any possible confusion that might be associated with delays in processing correspondence received from taxpayers.
The IRS is taking the step to avoid confusion for taxpayers who previously received a balance due notice (CP14) and mailed a payment to the IRS; however, that payment may still be unopened. The CP501, the CP503 and the CP504 are follow-up notices are typically automatically sent to taxpayers who do not respond to the CP14. These automatic follow-up notices will be temporarily stopped until the backlog of mail is reduced. The IRS will continue to assess the mail inventory to determine the appropriate time to resume the follow-up notices. However, taxpayers who have received but not yet responded to a CP14 balance due notice are encouraged to promptly respond.
In addition, the IRS has previously announced that these payments in the unopened mail will be posted and credited on the date the IRS received them ? rather than the date the agency opened and processed them. The IRS reminds taxpayers in this situation they should not cancel their checks and should ensure funds continue to be available so the IRS can process them to avoid potential penalties and interest. To provide fair and equitable treatment, the IRS is also providing relief from bad check penalties for dishonored checks the agency received between March 1 and July 15 due to delays in this IRS processing.
As the IRS works to stop these mailings at our processing centers, some taxpayers and tax professionals may still receive these notices during the next few weeks due to delivery of existing mailings.
Due to high call volumes, the IRS suggests waiting to contact the agency about any unprocessed paper payments still pending. See IRS.gov/payments for options to make payments other than by mail.
CP503 are being mailed. I got one
Thanks for letting us know, Jacque.
Why wouldn’t the IRS just automatically deduct what’s owed on the CP503 notice from your current years tax refund(2020)? I received a CP503 notice due from filing year 2018, I filed my 2020 taxes and I’m waiting to get a deposit date, wouldn’t they just deduct the debt from my refund automatically?
I paid the IRS for 2019 taxes on March, 8, 2021 after getting a notices from them that I owed the money plus interest and I paid it online at Irs.gov and received confirmation notice and now I received a C501 notice telling me I owe the money plus even more interest and penalties even though I already paid it. I called the IRS today but they were closed but I was able to find out using my information about my last 15 payments to the IRS and the payment I made on March 8th is included in the list of 15 payments. Why am I getting a notice saying I didn’t pay it when I didn’t send a check but paid it online and the payment was taken out of my account the next day?
Hi . Exactly same issue i file 2019 and 2020tax in 02/17/2021
In march cp14 form tell me i owe balance .i paid online before the date due
Now im surprised by a letter cp501 tells still have balance due
Any update please