IRS 2019 Tax Correspondence Delays – What You Should Do

August 21, 2020

Did you make a tax payment via check leading up to the 7/15 extended IRS due date? Many taxpayers did. If you’re check still hasn’t been cashed, do not worry. You are not alone, and you haven’t done anything wrong.

If you have paid but receive an unpaid tax notice

The IRS has a backlog of correspondence, including checks, received during the lead up to the 7/15 due date. If you made a 2019 extension payment or a 1st or 2nd quarter 2020 estimated tax payment prior to 7/15 and that check hasn’t been cashed, you likely will not receive a notice. If your payment was related to the filing of a tax return (Form 1040 or Form 1041), you may get a notice from the IRS that shows an amount due and asks for payment (“our records show you have unpaid taxes….”). If you sent in the payment, do not pay again with the notice you received. The IRS will get around to processing your check and will apply your payment as of the date received rather than the date processed. This method may not be entirely correct as payments needed to be mailed by 7/15, not received by 7/15.

Advice from the IRS

The IRS website is advising taxpayers whose checks have not cleared to be patient and not try to take corrective action. Please continue to ensure that there are funds in the account to cover the check. However, should the IRS process the check at a time when the funds are not available, they are providing relief from bad check penalties. However, there will still be interest and penalties for late filing, another reason not to cancel the first check and re-issue a new one.

Avoid processing delays

In the future, to avoid processing delays, Aprio recommends making payments electronically, which is available for federal and state payments. To pay your federal tax electronically, click here https://www.irs.gov/payments. If you have questions about your situation, please contact your Aprio advisor or reach out to us today.

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About the Author

Mitchell Kopelman

Mitchell is the partner-in-charge of Aprio’s Tax practice as well as the Technology & Biosciences group. He has been a partner since 1990 with Aprio, which is the largest Georgia-based tax, accounting and consulting firm. Mitchell works with companies in the software, gaming, clean tech, financial technology (FinTech), health care IT, processing, biosciences (biotech and medical device) and manufacturing industries. Whether a company is pre-revenue, starting up, growing or preparing for a liquidity event, Mitchell works with them to maximize their potential at each stage. He is known for promoting research, innovation and entrepreneurship by enabling companies to be successful, regardless of where they are in their business lifecycle.

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