Verifying payments received

[susieq]

Is there any way that we can electronically verify payments credited to a taxpayer's account? My client sent a check for his 2007 1040 on 6/13/08. He received a letter dated 6/30 saying that he owed about the same amount. His check has not been cashed by the IRS according to the bank yesterday (7/9/08)

Sure seems like it should not take so long for payments to be credited. I thought that the IRS cashed checks right away.

[DaveO]

Processing can lag a month

We use E-services but it doesn't update very fast either. Once the T/P is behind enough to get a local collection officer they can track payments quicker. Most of our chronically late paying 941 clients are getting calls from collection officers. It's crazy for people to always be late and pay hundreds or thousands in penalty and interest.

[OtisMozzetti]

Use EFTPS

Maybe my answer is not so applicable for the taxpayer clients who are dealing the Collections Division of IRS.

I believe that the way to create timely documentation of payments for those who pay on time is to use EFTPS, Electronic Federal Tax Payment System. It is available both for businesses and for individuals, and covers a range of types of tax payments. Also, when returns are e-filed, debits can be scheduled at that time.

[Jesse]

Is there any way that we can electronically verify payments credited to a taxpayer's account? My client sent a check for his 2007 1040 on 6/13/08. He received a letter dated 6/30 saying that he owed about the same amount. His check has not been cashed by the IRS according to the bank yesterday (7/9/08)

Sure seems like it should not take so long for payments to be credited. I thought that the IRS cashed checks right away.

I wonder if the system is slower than usual because of the stimulus overload. I had a client stop yesterday that mailed payment 6/18yet received letter dated 7/5 asking for payment also in the amount of tax due, which was equal in amount to the check that was sent, plus interest and penalties.

I went online to check the stimulus payment and the check is to be issued on 7/11 for $1,200, less the interest and penalties for a total of just under $1,000. I suggested check w/ the bank to see that the check cleared, but my best guess is that it must have and the IRS notice and payment received crossed systems or the IRS would not have issued any of the stimulus rebate as the amount of taxes due was over $1,200.

[S T]

Something New

One of my recent publications (referenced Tax Notes Today),

Personal tax account Information. Individuals will be able to access the last 3 years of personal account information at the IRS web site, the IRS announced. The new feature will be called "My IRS account". At first, taxpayers will be able to view and print their tax return data and some other information. Eventually the IRS want to offer features similar to online banking, so you can change your address and update personal information.

I wonder when this will take effect, and also wonder if this will allow authorized representative to access through this method similar to what California Franchise Tax Board site has without POA?

Sandy

[Lion]

Letter

Client received a letter recently dated 30 June saying he owed. His bank showed his payment cleared 13 June. Calling the IRS, discovered they posted the payment 11 June but still sent a letter dated almost three weeks later saying they did not receive payment. Of course, the letter and client's account included P&I. The credit for the P&I was still pending almost a month later. Could take three more weeks, we were told, for them to reverse the P&I that had been applied erroneously. But, the letter gave him a deadline for responding that is sooner than they are likely to have corrected his account. Even with copies of his canceled check, he's providing them with proof of less paid than they think he owes with the P&I still sitting in his account. Catch 22.