Today TaxMama® wants to talk to you about your missing payments to the IRS.
Dear Family,
Feeling frustrated about getting your tax questions, answered, issues resolved and trying to understand where your stimulus checks have gone?
Yeah. The bad news is – this is going to go on for a very long time.
The worse news is – you’re going to get IRS notices about balances due on your IRS tax liability if you send in your payments by mail, instead of paying them online. Why? The IRS is still working their way through the mounds and towers and truck-loads of mail – and may not have gotten to your check yet.
Tip – for future reference, try to ALWAYS make all IRS and state tax payments electronically. They will get recorded on time.
In the meantime – we have asked the IRS to see if they can turn off that automated notice in their computer system. After all, we all know that those penalties and assessments will be forgiven. But in the meantime, either you or your tax professional will have to write to the IRS to request that the penalties be forgiven. (Which letters the IRS won’t find for more months.) OR your tax pro has to invest time in trying to reach someone at the IRS – and your fees for this service might be more than your penalties.
Then the IRS will have to invest time and staff resources to respond – and a needless cycle will just play out – wasting everyone’s time, resources and funds. So our Stakeholder Liaison team has asked that the IRS just set the computer system not to send out ANY of those letters until at least October – by which time, hopefully, they will have processed all those letters and payments.
Of course, you can always switch and make those payments electronically – and stop payment on the paper checks! (Sure, that will generate more correspondence in the end for the bounced check fees – but you can easily clear that up by showing your proof of payment – later, when they are receiving paper again.)
You can use these resources to pay online – https://www.irs.gov/payments
The Direct Pay system comes straight from your bank account – with no fees.
https://www.irs.gov/payments/direct-pay
The debit or credit card version comes with fees –
https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card
(So instead of the debit card – use the Direct Pay option.)
Oh, by the way, businesses that have been sending in payments by mail?
Some of your letters have been returned, without even being opened. The IRS has closed certain lockboxes (contracts with some banks have expired). https://www.irs.gov/filing/closing-of-business-po-box-addresses-could-affect-your-clients
SAVE THOSE RETURNED envelopes! You will need those as proof that you tried to pay on time to avoid late payment penalties.
Instead, pay electronically – using the public payments link or QUICKLY set up the business payment system you should have had in the first place – at https://www.eftps.gov/eftps/ (IRS’ Electronic Federal Tax Payment System).
And remember, you can find answers to all kinds of questions about taxes and business issues, and Enrolled Agent tax education, free. Where? Where else? At www.TaxMama.com .
To make comments please drop into the TaxQuips Forum.
Incidentally, I don’t know if you know – TaxMama.com® is a free resource for people to get answers to tax questions BEFORE they make major, costly moves.
Reminder – Some Helpful IRS Links
Which IRS services are open and available – keep an eye on this link
https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue
IRS Electronic Options
IRS Online Assistance Available
Dealing with audit or collections issues – IRS is keeping this page up to date
Of course, all the filing and paying deadlines – including taxpayers overseas whose June 15th filing deadline has been pushed back to July 15th.
https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers?
And a great chart: How to Use the Tools on IRS.gov to Get Your Economic Impact Payment https://www.irs.gov/newsroom/how-to-use-the-tools-on-irsgov-to-get-your-economic-impact-payment
There are lots more things going on – watch the information in the IRS Newsroom – https://www.irs.gov/newsroom and TaxMama.com
