(RightWing.org) – Democrats forced through an extra $80 billion in funding for the IRS in last year’s so-called Inflation Reduction Act. With all that extra money, a reasonable person might think the agency would up its game and provide exemplary service, right? As it turns out, federal tax collectors had to issue an apology for their latest major blunder.
On February 24, the IRS issued a press release advising “disaster-area taxpayers” in portions of Georgia, Alabama, and most of California that it was extending the deadline for filing 2022 returns and making any associated payments to October 16. The taxing authority had previously given them a 30-day extension.
Basically, anyone living in an area declared a disaster zone by the Federal Emergency Management Agency received that extension. The extended filing and payment deadlines applied to business returns which are ordinarily due by March 15 for returns and April 18 for payments. For individuals, it’s April 18 for both filing and payments; and for tax-exempt groups, it’s May 15 for both.
Nevertheless, the IRS sent out millions of notices to individuals who filed tax returns for 2022 and owed money. Making matters worse, the letters warned recipients that the agency would add interest and other penalties to their balance if they didn’t promptly remit their payments.
On June 7, the IRS published a statement acknowledging its error, at least for Californians. The notice said the IRS “reassures California taxpayers” they still have an “automatic extension… to file and pay their taxes” for anyone covered by the state’s disaster declarations.
The IRS concluded its statement by stating it “apologizes” to tax professionals and taxpayers for any confusion created by the notices. It also advised that individuals who received those payment demands don’t have to contact the IRS or their tax preparers.
The IRS maintains a web page detailing the most recent tax relief provisions for taxpayers impacted by natural disaster “situations” if you live in one of those three states and have any filing questions. It remains unclear if the errant notices impacted any taxpayers in Georgia and Alabama.
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