IRS Policies - 3 Questions

[erchess]

Client had a CP 2000 that was right on the money so it had to be paid.

The notice was dated if memory serves 3/14 and response was due by 4/15 if additional interest was to be avoided. The paperwork was signed and a check was mailed but the postmark will be 4/16. Is that going to be a problem?

Taxpayer asked me if paying online by credit card would result in a greater or lesser charge than the interest from mailing the check late. I said that credit card would have the greater charge. Was I right or wrong?

Does anyone have an opinion on when direct debit will become available to people responding to notices? I e-filed this guy's return today and set up his small refund to be direct deposited AND his 4/15 Estimated Tax Payment to be direct debited. It would have been so easy to do the same with the payment on the Notice and then I am sure no one would have cared that the paperwork agreeing with the notice was a few days late.

[kaimana]

Anyone can set up and pay installment, estimated and tax liability through EFTPS. There is no cost for this service and the payments are taken from a checking or savings account.
Client has total control over the payments. It is faster than on-line banking and carries no fee like credit cards do. The client can, however, opt for payment through a credit card also.

https://www.eftps.gov

[TaxLadyinPA]

I don't think they care

[QUOTE=erchess;80897]Client had a CP 2000 that was right on the money so it had to be paid.

The notice was dated if memory serves 3/14 and response was due by 4/15 if additional interest was to be avoided. The paperwork was signed and a check was mailed but the postmark will be 4/16. Is that going to be a problem?


I've had clients before who have paid these as much as 5 days late and never got another bill from IRS. I think unless it was a huge huge amount they don't waste their time processing paperwork for a few more dollars. Probably also depends on the mood of the person who opens the envelope LOL