Tax Alert: Update Regarding Issue With IRS Balance Due Notices

Many taxpayers have been receiving balance due notices for filed tax returns where the payments were indeed mailed in. The IRS is aware of this issue and is advising the following:

  1. Do not cancel the outstanding check and attempt to resend payment or make an electronic payment.
  2. Once the IRS processes the payment previously submitted, they will post the payment as of the date received as opposed to the date processed. This should self-correct the penalties and interest issues.
  3. In the event a check expires prior to the IRS processing the payment, the 2% “bad check” penalty will be eligible for relief.
  4. The IRS will temporarily suspend follow up notices to the previously issued balance due notices while the mail backlog is worked through.

In the meantime, please forward any tax notices you receive to your engagement partner at Sax so we can review further and advise if any action must be taken.

Sax will continue to update you as further details are made available.  Reach out to your Sax advisor or email [email protected] with questions.  For more and on-going information relative to your state and business, visit Sax’s COVID-19 Resource Center.

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