What This Notice Means

On August 10, 2023, FEMA declared a major disaster for Maui and Hawaii counties. Because of the damage, the IRS paused mailing certain notices to taxpayers in those areas from August 17, 2023, through January 30, 2024.

During that window you filed a Form 1040 showing a balance due, but the IRS didn't mail you a timely notice asking for payment. So the IRS is automatically removing the failure-to-pay penalty under IRC section 6651(a)(2) for the period from when it normally would have mailed the notice up to the date shown on your CP321A.

This is good news. The relief is automatic.

What to Do

  • You don't need to contact the IRS to get this relief.
  • Update your mailing address if it has changed, so you get the next notice and any refund check. You can use Form 8822 or the IRS address change page.
  • Watch for a follow-up notice. It will explain the adjustment and ask for payment if you still owe.
  • Respond to any future notice by the due date on that notice.

If You Already Paid

Payments can take up to 21 days to post. If you already paid some of the penalty being removed, you may get a refund check, as long as you don't owe anything else the IRS needs to collect. A refund can only go by direct deposit if you asked for that on your original return. Otherwise it's mailed to the address the IRS has on file.

If you have an approved installment agreement, keep making your payments. If you applied for one but it isn't approved yet, pay as much as you can now to limit additional interest and penalties.

If You Still Can't Pay

Removing this penalty doesn't erase the tax itself. If you still owe and can't pay in full, you can apply online for a payment plan. In cases of financial hardship, the IRS may temporarily delay collection until your situation improves.

If you still owe after this penalty relief and need a plan to resolve the balance, call us at (813) 229-7100.