With the current pandemic creating a considerable backlog at the IRS, chances are you might find that the federal government hasn’t credited your payments following the recent tax deadlines or may even show penalties or interest on balances due that you have already sent to them. The St. Joseph accounting firm of Kruggel Lawton CPAs cautions you not to panic or to cancel a payment that appears to have not yet cleared.
Officials with the accounting firm, located at 526 Upton Drive, tell us that due to a COVID19-related backlog at the IRS, some taxpayers’ checks may still be unopened. They says, “You may find that the IRS has not given you credit for payments made on time, even well before the deadline. Do not be alarmed. The IRS will post these checks on the date received rather than the date the IRS processed them.”
In some cases, IRS accounts are showing outstanding liabilities, penalties, and interest for balances due that may already have been paid. Kruggel Lawton CPAs say that they have seen the following cases:
- The IRS has cashed the check and not applied it to the taxpayer’s account yet.
- The IRS has not cashed the check, but certified mail receipt shows the IRS has received the check.
What should you do if this happens to you?
“Be patient and do not cancel the check. To avoid penalties and fees, be sure to keep those funds available in your account so that the IRS can process them.”
The firm reports that the IRS will not be administering bad check penalties for dishonored checks received between March 1st and July 15th, 2020. However, interest and penalties may still apply.
Kruggel Lawton CPAs is ready to offer assistance, saying that if you have concerns about your tax bill and IRS account, you can contact them.
Kruggel, Lawton & Company, LLC, is a full-service accounting and business consulting firm offering assurance services, tax compliance and consulting, estate planning, business valuation, outsourced accounting services, and executive searches. The firm also offers national and international resources as an independent member of the BDO Alliance USA. In addition to their Upton Drive offices in St. Joseph, Kruggel Lawton also has offices located in South Bend, Elkhart, and Goshen, Indiana; and Knoxville, Tennessee. You can visit them online at http://www.klcpas.com to learn more.
