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IRS not cashing checks for owed amounts

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Level 3

I have now had 4 Trust returns with tax due where the checks were written and sent in months ago and have not been cashed.  Have recommended cancelling and sending in new checks 2 of them over 6 weeks ago but those have yet to be cashed.  Anyone else seeing this?

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Level 15

The IRS has been stockpiling mail, as they've also been under COVID-19 restrictions & no one's been there to open the envelopes.

*I* would be worried about stopping payment, then the IRS does (eventually...) try to cash the checks and payment is declined.  IF it gets to six months & a stale dated issue.... Oy, the paperwork that'll be flying.

Former Chump... umm.... AllStar.
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Highlighted
Level 15

The IRS has been stockpiling mail, as they've also been under COVID-19 restrictions & no one's been there to open the envelopes.

*I* would be worried about stopping payment, then the IRS does (eventually...) try to cash the checks and payment is declined.  IF it gets to six months & a stale dated issue.... Oy, the paperwork that'll be flying.

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches

View solution in original post

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Level 3

Yes, I have the same problem with one trust, and my partner in the firm has a similar case. You are not alone. This seems to be an issue only with the IRS service center that processes trust tax returns.

And to add insult to injury in my case, the client just received a notice from the IRS, saying that they hadn't paid the amount due with the trust return when filed! I advised my client to simply wait - Hopefully the IRS employees will find these tax payment checks when they get back to work in their offices.

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Level 15
Level 15

Ive got a client with a CP2000 response that was sent in with a check back in March, still hasnt cleared either...havent gotten anymore notices though.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 10

Probably Kansas City Service Center, which I don't think has reopened.  Ogden opened partially a few weeks ago, and is making progress on 1040 returns -- so probably 1041s, also.   I would not have stopped payment on checks.  It's not that difficult to keep up with the news on what is happening at IRS, at the federal government, and around the country and world.  As mentioned, now IRS is going to cash both checks, charge a penalty for the rejected one, and take time away from helping the rest of us to sort out the mess.  

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Level 3

Actually it is the Ogden facility which I just saw is just partially opening up.  In today's mail I just got notices disallowing my clients daughter as a dependent (she is 16 and absolutely a dependent) dated April 6th with a due date of payment April 27th or respond by that date. The notices are from Austin TX.

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Level 14

Were there inserts with that letter saying the dates are messed up b/c the mail sat for months?


ex-AllStar
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Level 3

Nope,

 

Was on the Practioner Hotline an hr ago (back up and running, that goodness) about another problem and the agent said the section of the IRS that prints notices just got going again and is just spitting out backlog with no regard for what the due dates say.  According to the agent, notices during this time have a blanket 7/31/20 respond date.