Margaret Amsden

Taxpayers may unfortunately find that their checks, mailed with tax returns, are on backlog at the Internal Revenue Service (IRS) due to processing delays as a result of COVID-19. The IRS has recognized that they have a significant backlog in the mail to be processed, but has assured taxpayers that the payments will be posted on the date the IRS received them, not the date they process them. With these delays in mind, taxpayers should refrain from cancelling their checks and should ensure there are available funds so the IRS can process the payments once they get to them. This way, taxpayers can avoid penalties or interest.

Additionally, the IRS is helping taxpayers by providing relief from bad check penalties for dishonored checks the agency received between March 1 and July 15 due to delays in this IRS processing.

The IRS also recently announced the suspension of the mailing of automatic notices to taxpayers who have a balance due on their taxes. The IRS is taking this step to avoid confusion for taxpayers whose tax payment has not been processed, and those who previously received a balance due notice and mailed a payment to the IRS; however, that payment may still be unopened. Taxpayers are encouraged to refrain from contacting the IRS about pending paper payments due to high call volumes.

To enroll in the IRS Electronic Funds Transfer Payment System to make future payments electronically and avoid processing delays, please check out this link. Additional information about IRS impacts from COVID-19 can be found here.

Clayton & McKervey is committed to bringing timely tax and accounting news your way. To learn more about how we can help you navigate all potential tax planning matters, call us at 248-208-8860 or click here to contact us. We look forward to speaking with you soon.