Due to the pandemic, the IRS is experiencing staff shortages and other issues. As a result, there have been delays in processing payments sent to the IRS for some types of returns, resulting in the IRS sending erroneous notices and in some cases, returning the timely sent checks. We have heard from many fiduciary (trust and estate) clients who have received notices requesting payment for previously paid, but uncashed checks, for the amount due with the 2019 income tax return or extension.
Don’t be alarmed! The IRS is advising to NOT stop payment on the outstanding check or send a new check. The IRS has assured that, once the payment is processed, they will record the payment as of the date received, not the date they process it.
If you receive a notice from the IRS (or other government authority) for which you have questions, feel free to contact us and we will be able to assist you in the next steps.
For more information about the IRS operations during COVID-19, click here.