COVID19 Backlog at the IRS

Due to a COVID19-related backlog at the IRS, some taxpayers' checks may still be unopened. You may find that the IRS has not given you credit for payments made on time, even well before the deadline. Do not be alarmed. The IRS will post these checks on the date received rather than the date the IRS processed them.

In some cases, IRS accounts are showing outstanding liabilities, penalties, and interest for balances due that may already have been paid. Kruggel Lawton CPAs have seen the following cases:

  1. The IRS has cashed the check and not applied it to the taxpayer’s account yet.
  2. The IRS has not cashed the check, but certified mail receipt shows the IRS has received the check.

What should you do if this happens to you?

Be patient and do not cancel the check. To avoid penalties and fees, be sure to keep those funds available in your account so that the IRS can process them.

The IRS will not be administering bad check penalties for dishonored checks received between March 1 and July 15, 2020. However, interest and penalties may still apply.

Kruggel Lawton CPAs is here for you. If you have concerns about your tax bill and IRS account, contact us immediately.

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