May 13, 2026
IRS GRANTS MISSISSIPPI DISASTER RELIEF
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CP53E Causing Confusion on Balance-Due Returns NATP members are reporting an increase in CP53E notices referencing "missing direct deposit information," even when a return shows a balance due. This appears to be a system-generated message tied to missing banking information, not the taxpayer's actual outcome. This has raised questions from both practitioners and clients about accuracy and whether action is needed. NATP brought this issue directly to the IRS. Here's the current understanding:
Until official guidance is released, we recommend telling your client that if the return shows a balance, the direct deposit language does not apply and can be ignored.
Proactive clients can log in to their IRS online accounts and enter their direct deposit or withdrawal information. Note that clients have 30 days to update or add bank account information upon receiving a notice. |
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Delayed IRS Withdrawals May Not Trigger Penalties We've received multiple reports from tax professionals that electronic funds withdrawals submitted with timely-filed returns were not debited by April 15, with some payments not processed until April 28 or 29 (or still not processed today). Based on confirmation from the IRS Stakeholder Liaison office, if a payment was scheduled for a timely withdrawal, taxpayers generally should not face late payment penalties, even if the IRS processes the debit after April 15. High filing-season volume, particularly around the April deadline, can delay processing as the IRS works through a large volume of transactions. In many cases, funds are not withdrawn until the return finishes processing. A delay in withdrawal does not necessarily indicate a late payment. Tax professionals should monitor the client's account transcript and allow time for the payment to post. If the withdrawal has not occurred after three weeks, continue tracking the status and consider contacting the IRS if concerns remain. |
Updated on 4/14/2026: The relief described below applies to taxpayers in ALL 82 counties in the state of Mississippi.
MS-2026-01, April 14, 2026
WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in Mississippi affected by the severe winter storm that began on Jan. 23, 2026. These taxpayers now have until June 8, 2026, to file various federal individual and business tax returns and make tax payments.
Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in Mississippi qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, for certain deadlines falling on or after Jan. 23, 2026, and on or before June 8, 2026, taxpayers are granted additional time to file.
As a result, affected individuals and businesses will have until June 8, 2026, to file returns and pay any taxes that were originally due during this period.
The June 8, 2026, deadline applies to individual income tax returns and payments normally due on or after Jan. 23, 2026. Penalties on payroll and excise tax deposits due on or after Jan. 23, 2026, and before Feb. 9, 2026, will be abated as long as the tax deposits are made by Feb. 9, 2026.
The June 8, 2026, deadline also applies to affected quarterly payroll and certain excise tax returns normally due on Feb. 2, 2026, and April 30, 2026.
If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
Under the recently enacted Disaster Related Extension of Deadlines Act (H.R. 1491), the postponement of a federal tax return deadline due to a federally declared disaster is treated as an extension for purposes of calculating the limit on a tax refund. This legislation gives affected taxpayers additional time to claim a refund or credit.
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS Special Services toll-free number at 866-562-5227 to request this tax relief. Tax practitioners in the covered disaster area, who maintain records necessary to meet a filing or payment deadline for taxpayers located outside the disaster area, may contact the IRS Special Services; if the practitioner maintains the necessary records of ten or more clients, please refer to Bulk requests from practitioners for disaster relief for additional guidance.
Covered disaster Area
The locality listed above constitutes a covered disaster area for purposes of Treas. Reg. §301.7508A-1(d)(2) and affected taxpayers in the locality are entitled to the relief detailed below.
Affected taxpayers
Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.
Under section 7508A, the IRS gives affected taxpayers until June 8, 2026, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after Jan. 23, 2026, and before June 8, 2026.
Estimated income tax payments originally due on or after Jan. 23, 2026, are postponed through June 8, 2026, and affected taxpayers will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before June 8, 2026.
The IRS also gives affected taxpayers until June 8, 2026, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (December 10, 2018), that are due to be performed on or after Jan. 23, 2026, and on or before June 8, 2026.
Unless an act is specifically listed in Rev. Proc. 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits. However, penalties on deposits due on or after Jan. 23, 2026, and before Feb. 9, 2026, will be abated as long as the tax deposits were made by Feb. 9, 2026.
We are looking forward to new adventures in 2026. Please call us if you need assistance. Thank you again and may God bless your family and your business!!