IRS Incorrect Notices Cause Confusion for Taxpayers Affected by Natural Disasters

The IRS incorrect notices sent these notices to individuals affected by wildfires, floods, and tornadoes, despite their filing dates being extended.

IRS Incorrect Notices
IRS Incorrect Notices ( Photo: Yahoo Finance )

Taxpayers who have been impacted by natural disasters and received payment-due notices from the Internal Revenue Service (IRS) are facing confusion due to IRS incorrect notices

The original tax-filing deadline of April 18 was extended for taxpayers residing in areas declared as disaster zones by the Federal Emergency Management Agency (FEMA). Depending on the state, the new filing deadlines range from July to October. However, the IRS incorrect notices failed to account for these extensions in its automated system, leading to erroneous payment-due notices being sent.

Larry Pon, a certified public accountant, expressed his concerns about the lack of clarity and distress caused to taxpayers, stating that the IRS incorrect notices issued an apology press release and Notice 1155-G explaining the disaster relief. Nevertheless, the confusing notices have left taxpayers bewildered.

Joanna Ain, associate director of policy at Prosperity Now, highlighted the need for the IRS incorrect notices to address the issue promptly, emphasizing that budget cuts over the years have negatively impacted the agency’s customer service.

Taxpayers affected by natural disasters are advised to disregard the IRS incorrect notices but should remain vigilant about their state-specific deadlines

The filing extensions differ across states, with deadlines set for July 31, August 15, October 16, and November 15.

Tom O’Saben, director of tax content and government relations for the National Association of Tax Professionals, encouraged affected taxpayers to stay updated through the IRS incorrect notices newsroom, considering the ongoing extension season and unpredictable weather conditions that may lead to further disasters.

Taxpayers with questions or concerns are advised to seek assistance from tax professionals or organizations like Volunteer Income Tax Assistance (VITA). However, due to staff shortages, the IRS incorrect notices have requested that taxpayers avoid contacting them directly. The VITA site locator tool can help individuals find a nearby VITA location.

Dwight Nakata, a certified public accountant, recommended that taxpayers consult their tax advisors to review the IRS incorrect notices and determine if any action is necessary. In certain cases, clarification may be needed regarding the IRS incorrect notices stance on disaster zones, and taxpayers may request penalty abatement accordingly.

 

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