The Interior Revenue Service offers taxpayers a break if their cheques to pay their taxes have not yet been processed and are in trailers that the IRS had to install during the latest pandemic of coronavirus.
Throughout this Spring a backlog of millions of unopened mails throughout trailers outside IRS facilities remained shuttered by various IRS offices. As IRS employees returned to work for the fiscal year, they started sorting and processing the mail, but every day there was more mail.
In the face of concerns that the IRS had now begun to send balance due updates to certain taxpayers, while they were still submitting checks for their trust and estate tax returns, the website of the IRS during COVID-19 has been modified to provide new information about overdue checking and payment notices, which suggested that the payment was issued by the date of payment, not the day on which it was paid. The IRS warned the taxpayer that their checks would not be canceled until the IRS would actually process them.
The return of e-mail to the IRS, which was still not open due to COVID-19, will be sent by the taxpayer either with or without a tax return. There shall be no date on which we got paid for the Company accepted payments. To order to escape penalties and interest, taxpayers will not cancel their checks and ensure that the funds stay available to the IRS.
It would help taxpayers escape interest and fines, given that the check is not canceled or returns.
The problem was particularly acute for taxpayers who filed estate and trust tax declarations on the Form 1041 and lacked the balance of due notification.
“While many have found that they receive notices of the fees which are ostensibly due to the tax returns when the report was submitted on July 15, the IRS is behind the processings of products which have been mailed to the department and contain other tax payments,” wrote Ed Zollars, partner of the CPA firm of Thomas, Zollars & Lynch, on a blog post for the CPA company of Lynch.
The IRS also struggles with the persistent issue of answering its busy telephone lines for customers, aside from being limited in terms of workers for the delivery of the mail, and advises not calling it.