Photo: AFP
A tax lawyer has written to Northern Marianas delegate Kimberly King-Hinds on the ongoing US Postal Service issues impacting taxpayers in the CNMI.
Through direct work with residents and businesses, Tina Azarvand told King-Hinds that she has witnessed firsthand how USPS service decisions are creating an insurmountable barrier to basic constitutional rights and due process for US citizens in the territories,
She said these have caused delays that are severely compromising taxpayer rights and compliance capabilities in the CNMI and Guam.
"The current mail delivery timeframes between the continental United States and the islands have created an untenable and discriminatory situation," she said.
"While the [Internal Revenue Service] provides 30-day response windows for various notices, these critical documents frequently arrive in Guam or the CNMI with merely five days remaining - and in numerous documented cases, after the deadlines have already expired."
Azarvand said this systematic failure on the part of USPS effectively creates two classes of US citizens - those on the mainland with full response rights and those in the territories who are denied these same fundamental protections.
She said the impact of these delays is starkly illustrated by the Employee Retention Credit (ERC) situation.
"Several members of the community have completely missed their 30-day response deadlines for ERC information document requests from the IRS due to postal delays, resulting in a forfeiture of their claim or forcing them to hire a tax practitioner to file an appeal on their behalf."
The tax lawyer said this situation is particularly dire in certain areas of the CNMI where mail service is severely limited.
"While mainland US citizens enjoy six-day delivery schedules, residents on the islands of Tinian and Rota in the CNMI receive mail delivery only twice per week.
"This drastically reduced service creates additional barriers for US taxpayers residing in Guam and the CNMI, effectively cutting their already shortened response windows even further.
"When combined with the existing delays in cross-Pacific mail delivery, these limited delivery schedules make it virtually impossible for residents to meet federal deadlines."
Azarvand said she will be providing King-Hinds letters from several local business owners who have expressed their deep concerns about these postal delays and how it has adversely hurt them or their business.
"The consequences of these delays extend far beyond economic impact. When Notices of Intent to Levy arrive late, taxpayers can face unexpected seizures of their assets, including bank account monies necessary to cover payroll and other expenses, without any genuine opportunity to respond.
"When 90-day letters for US Tax Court petitions arrive with just days remaining in the response window, taxpayers lose their only pre-payment judicial forum."
Azarvand said the most urgent step toward ensuring equal protection under the law is guaranteeing all US taxpayers have their Taxpayer Bill of Rights protected, including having the same effective timeframes to respond as US taxpayers residing stateside.
"We implore you to bring these mail delivery challenges to the attention of the appropriate congressional committees and the USPS Board of Governors."
While Guam and the CNMI face other significant challenges with tax administration - including the absence of Low-Income Taxpayer Clinics and IRS service hours that do not align with the Chamorro time zone - addressing the mail delivery crisis must be the first priority, she wrote.
"For the Taxpayer Bill of Rights to be meaningful, taxpayers need reliable communication channels and reasonable access to IRS assistance."
