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- Mailing backlog has resulted in several unsent tax payments to IRS
- IRS has issued unnecessary balance-due notices
- Taxpayers are advised to not cancel any checks
The slowdown of the US Postal Service has certainly put a loop in the new, post-COVID-19 norm into which our country is trying to assimilate. From concerns over mail-in ballots for the impending election and necessary goods failing to be delivered, eyes are certainly on the new Postmaster General, Louis DeJoy, for answers.
The backlog of mail is a likely result of DeJoy’s new implementations to the mailing process (which included cuts on overtime payments, among other changes). The outcome of these changes and the subsequent backlog? Several undelivered and unopened envelopes from taxpayers with checks to the IRS.
In response, the IRS unknowingly issued a volume of late fee penalties and other notices to taxpayers whose payments have yet to be opened. Rep. Richard Neal (D-MA) said “At one point this summer, the IRS had approximately 12 million pieces of unopened correspondence in its inventory” after the closing of several IRS offices due to Covid-19.
Fortunately, the IRS has acknowledged the mistake and will postpone mailing notices until taxpayer accounts have been updated. Additionally, the IRS stated that relief will be provided for bad check penalties received by the agency between March 1 and July 15: “Any payments will be posted as the date we received them rather than the date the agency processed them.”
Taxpayers are directed to not cancel their checks, allowing the IRS to process them as it begins processing all backlogged mail.
Have more questions? Don’t hesitate to call our offices at (516) 541-6549 to speak to our Coronavirus Response Team or check out our DSJ COVID-19 Information Center to stay current.
Sincerely,
Devin McQuillan
Associate, Creative Solutions
Contact:
516-541-6549 | Email