Did you have federal income tax due on July 15, 2020? Did you pay the income tax on July 15, 2020? Did you receive a notice from the Internal Revenue Service stating that you haven’t paid the income tax and are now assessed interest and penalties?
Each person panics slightly until he remembers that the check was sent to the IRS. The next step is checking the bank statements and realizing that the check has not cleared.
This has happened to many taxpayers since July 15, 2020. In fact, it has happened to so many people that the IRS has issued a statement that it has suspended the mailing of notices to taxpayers who had a balance due on their return. Because of the COVID-19 pandemic, the IRS has a considerable amount of unopened mail, so many checks have not been processed. If checks have not cleared the bank, the IRS’s statement indicates that taxpayers should not cancel their checks because the IRS will credit the checks as of the date the IRS received them. To be fair and equitable, the IRS is also providing relief from bad check penalties for dishonored checks it has received between March 1 and July 15 due to delays in processing.
Some notices may still slip through and be sent, so the IRS is asking for patience.
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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.