Client just called that the check he sent in payment of his tax due has not yet cleared through his bank. I am so tired with a new job and computer problems that I need to ask advice on what to tell him to do. I'm sorry I can't even think straight. If it got lost in the mail, he'll have penalties and interest due. What if they received it and lost it? I'm sure this has happened before.
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I also had a client with the same problem. My client put a stop payment on the check and issued a new check. I had suggested that she use a credit card to make the payment, in order to cut off the interest bleeding.
She owed around 10,000 that was supposed to be withdrawn on the 14th but the bank dropped the leading number 1 several years ago but decided to lock it out this year without notifying customers. My client wrote and mailed both Fed & State checks on the 14th but only the State check cleared....??????This post is for discussion purposes only and should be verified with other sources before actual use.
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1040 Es
The same thing happened to a guy's estimated payment. I told him to wait and if it didnt clear before Jan 15 to just rewrite it then. Sure enough in two months the checked cleared. The IRS is getting slack with check payments. I encourage electronic debits but yet some just absolutely refuse to give out that information even when I say the IRS already knows that information.
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And a Lot of Otehr People
Not only does the IRS have access to this data but apparently so do their contractors and others with direct access to the IRS networks according to the GAO.
Mailing with a "proof of mailing: or "certified" service and a copy of the correspondence will provide some evidence of the timely filing and payment to them. Do not use "registered" mail as this service takes longer and requires signatures for every transfer until delivered which causes delays. Also make sure the payments are being mailed to the payment address and not the form processing center.
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This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.
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