New Online Option for Certain IRS Notices

Taxpayers who receive certain notices requiring them to send information to the IRS can now submit their documentation online through IRS.gov. This new secure step will allow taxpayers or their tax professionals to upload documents electronically rather than mailing them in, helping reduce time and effort in resolving tax issues.

Initially, the online correspondence feature will be available to the more than 500,000 taxpayers each year who receive one of nine IRS notices. These notices are primarily sent to individual tax filers claiming various tax benefits, such as the Earned Income Tax Credit for low- and moderate-income workers, the Child Tax Credit for families with dependents, the Premium Tax Credit for those who obtain health coverage through the Health Insurance Marketplace and members of the military claiming combat zone tax benefits. Of note, taxpayers receiving these notices can respond securely to IRS online, regardless of whether they have an IRS Online Account.

How the Document Upload Tool works

The prototype for the Document Upload Tool was developed by IRS information technology specialists in 2021. Since then, the IRS has been testing this feature on a limited number of exam-related notices, and 38% of the responses to these notices have used the agency’s secure electronic communications rather than traditional mail.

Language on the notice informs the taxpayer to “Send us your documents using the Documentation Upload Tool within 30 days from the date of this notice.” It includes the link and a unique access code.

  • The taxpayer can open the link in any browser and then input their unique code, first and last name, and Social Security, Individual Taxpayer Identification, or Employee Identification number.
  • The taxpayer can then securely upload scans, photos, or digital copies of documents (maximum of 15 MB per file, up to 40 files).
  • The taxpayer receives a confirmation that the IRS received their documents, and the IRS employee assigned to the case can manage the transmitted documents.

What Notices Qualify?

Taxpayers who receive one of the following notices with the link and access code can choose to upload their documents:

  • CP04, relating to combat zone status.
  • CP05A, information request related to a refund.
  • CP06 and CP06A, relating to the Premium Tax Credit.
  • CP08, relating to the Child Tax Credit.
  • CP09, relating to claiming the Earned Income Tax Credit.
  • CP75, relating to the EITC.
  • CP75a, relating to the EITC.
  • CP75d, relating to the EITC and other credits.

Future Expansion Planned

This capability is expected to expand to dozens of other notices in the coming months and years. In addition, the IRS will offer digital correspondence on various other taxpayer interactions. During live phone calls with taxpayers, IRS employees can grant upload access by providing the link and unique access code.

Secure Digital Correspondence Offers a Better Solution

For taxpayers and tax professionals working with the IRS, this new capability reduces the correspondence burden, ensures tax compliance, and improves the customer experience. For IRS employees, this reduces paper correspondence, decreases processing time, and speeds case resolution.

Questions? Please, don’t hesitate to contact the office.

San Jose: (408) 252-1800

Watsonville: (831) 726-8500

IRS offers relief to California storm victims

Edit: On Friday, February 24, the IRS further extended the deadline for affected counties to 10/16. Read additional details in our latest post. As of this edit, the CA FTB has not yet announced conformity to the new October deadline. We will continue to update our blog with details as they become available.

The IRS announced on January 10th that California storm victims now have until May 15, 2023 to file various federal individual and business tax returns and make tax payments. Relief is automatically offered to individuals and households that reside or have a business in the following counties of California:

  • Alameda
  • Butte
  • Calaveras
  • Colusa
  • Contra Costa
  • El Dorado
  • Fresno
  • Glenn
  • Humboldt
  • Kings
  • Lake
  • Los Angeles
  • Madera
  • Marin
  • Mariposa
  • Mendocino
  • Merced
  • Mono
  • Monterey
  • Napa
  • Orange
  • Placer
  • Riverside
  • Sacramento
  • San Benito
  • San Bernardino
  • San Diego
  • San Francisco
  • San Joaquin
  • San Luis Obispo
  • San Mateo
  • Santa Barbara
  • Santa Clara
  • Santa Cruz
  • Siskiyou
  • Solano
  • Sonoma
  • Stanislaus
  • Sutter
  • Tehama
  • Trinity
  • Tulare
  • Ventura
  • Yolo
  • Yuba

Relief includes more time to file individual and business tax returns due on the March 15th or April 15th deadlines, Payroll tax returns due on the January 31st and April 30th deadlines, 4th quarter estimated tax payments due on January 17th and 1st quarter estimated tax payments due on April 15th. While the California Franchise Tax Board (FTB) has not yet announced any relief, historically they have matched the federal extensions in disaster declaration situations. As we await confirmation from the FTB as to whether California will conform to these extensions, right now the California 4th quarter estimated taxes are still due January 17th.

If you or your business reside in one of the impacted counties:
No action is required by you. Penalty relief for late filing is automatic and is based on the address you have used to file your tax returns in the past.

If you are outside the currently impacted counties:
You may be eligible for relief but it is not automatic. You can continue to watch this page (https://www.irs.gov/newsroom/tax-relief-in-disaster-situations) for more updates as new counties are added. We will also send updates as we learn of any changes to the impacted disaster declaration zone.

Both Wheeler Accountants offices are located in impacted counties (Santa Clara and Santa Cruz) and we have been experiencing flooding and power outages this week along with many other Californians. The IRS permits taxpayers who live or reside outside the disaster declaration area, but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area to be eligible for relief, but it is not automatic. Thus as a client of our firm you are eligible for relief by contacting the IRS at 866-562-5227. We will not automatically call the IRS on your behalf and we will proceed to complete your work in accordance with the traditional deadlines unless we hear from you that you would like to be eligible for the postponement.

Other state income tax returns for California residents in a federally declared disaster county may not be granted an extension. For multi-state returns, federal conformity to federally declared disaster extensions will need to be examined on a case by case basis.

We strongly encourage all clients to continue to submit tax documentation to our office as you normally would to ensure a smooth filing season and to allow us to provide the best possible service to you. The start of tax filing season including filing to obtain refunds due is not delayed by the disaster declaration.

If you have suffered economic loss as a result of the California storms please consult your tax team here at Wheeler as you may be eligible to deduct any losses on either your 2023 or 2022 tax returns, even if the loss occurred in 2023.