Check Payment

[windmill]

Mailed a check to the IRS on December 22, 2021 for tax year 2020.  Check has not cleared the bank as of February 24th.

Called the IRS for seven days and got the message "due to high volume, call back tomorrow." Have received two IRS letters noting that payment has not been received.

Anyone else having a similar problem?  what to do?

[Lee B]

"If the payment hasn't been credited and your check hasn't cleared, you may choose to place a stop payment order on the original check and send another payment. If you choose this option, the IRS won't charge a dishonored check penalty. And you may be reimbursed for bank charges related to stopping payment. See the Form 8546, Claim for Reimbursement of Bank Charges PDF for more information on claiming reimbursement of bank charge."

 

I am advising all of my clients to stop mailing checks to the IRS.

[Abby Normal]

4 minutes ago, cbslee said:

I am advising all of my clients to stop mailing checks to the IRS.

Same, and have been for at least a decade. Seen way to many problems with mailed in checks.

[jklcpa]

21 minutes ago, windmill said:

Mailed a check to the IRS on December 22, 2021 for tax year 2020.  Check has not cleared the bank as of February 24th.

Called the IRS for seven days and got the message "due to high volume, call back tomorrow." Have received two IRS letters noting that payment has not been received.

Anyone else having a similar problem?  what to do?

 

Yes, similar except my client's check from December cleared but IRS still sent another notice. At this point we aren't sure if it just crossed in the mail before the next notice was generated.

 

10 minutes ago, cbslee said:

 

I am advising all of my clients to stop mailing checks to the IRS.

I try every year and most of mine just won't do it. 

[Lee B]

42 minutes ago, jklcpa said:

 

Yes, similar except my client's check from December cleared but IRS still sent another notice. At this point we aren't sure if it just crossed in the mail before the next notice was generated.

 

I try every year and most of mine just won't do it. 

For my clients, I think using Direct Pay or EFTPS is too far outside of their comfort zone.

I am thinking about having them sign a letter that it's their choice to pay with a check by mail ?

[jklcpa]

29 minutes ago, cbslee said:

For my clients, I think using Direct Pay or EFTPS is too far outside of their comfort zone.

Yes, and for many of my older clients as well.  I really don't like scheduling the direct debit through my software but may be encouraging this method for a select few that just can't seem to remember to pay the balance due with the 1040V.  They are also the ones that are habitually late in paying their quarterly estimates.

[Abby Normal]

EFTPS might be too hard but Direct Pay is pretty darn easy.

[schirallicpa]

If they insist on mailing a check, I insist that send it priority so we have tracking

 

[Lee B]

1 hour ago, schirallicpa said:

If they insist on mailing a check, I insist that send it priority so we have tracking

 

Even if you have tracking that doesn't mean the check gets processed, deposited and posted to the correct place.

[Lee B]

Years ago after I got out of the Army, I worked for the Postal Service for several years, before I decided to go back to college.

All tracking means is that the postal service employee at the point of delivery scanned the bar code on the piece of mail being delivered.

[Randall]

My ES check payments have cleared quickly.

 

[Yardley CPA]

17 hours ago, cbslee said:

I am thinking about having them sign a letter that it's their choice to pay with a check by mail ?

So that you're not implicated in any way?  If they choose to pay by check, and you explain the risks associated with that, the onus is on them, no?

[Terry D EA]

17 hours ago, Abby Normal said:

EFTPS might be too hard but Direct Pay is pretty darn easy.

Yes, it is. Sad to say it is not full proof or 100% either. Just responded to a CP3291A for a client who paid using Direct Pay in June of 2021 to pay the amount proposed in the CP2000 they received. We have the confirmation statement, bank account showing the draft responses etc. I had a client yesterday insist on writing and mailing a check cause they've done it this way for years. I strongly suggested the direct draft through the software. Some folks are still old school and resistant to change. 

 

19 hours ago, cbslee said:

For my clients, I think using Direct Pay or EFTPS is too far outside of their comfort zone.

I am thinking about having them sign a letter that it's their choice to pay with a check by mail ?

I like that idea. Drake now generates a transaction summary form for the client to sign they authorized the direct draft or direct deposit. To include a form like you mention is a small task in Drake. That way the client can't say they weren't advised of the risks.

[Margaret CPA in OH]

When I have the 8879 signed after returns review,  I also have the client(s) initial the payment pages that they have confirmed the direct deposit/debit amounts AND the bank routing and account numbers whether for tax refunds or payments and/or estimates.

[Lee B]

9 minutes ago, Margaret CPA in OH said:

When I have the 8879 signed after returns review,  I also have the client(s) initial the payment pages that they have confirmed the direct deposit/debit amounts AND the bank routing and account numbers whether for tax refunds or payments and/or estimates.

Excellent Ideas

[Abby Normal]

30 minutes ago, Margaret CPA in OH said:

When I have the 8879 signed after returns review,  I also have the client(s) initial the payment pages that they have confirmed the direct deposit/debit amounts AND the bank routing and account numbers whether for tax refunds or payments and/or estimates.

Same. We added a text box with a signature line and a date line.

[Catherine]

I have also seen letters when payments have been made using Direct Pay as well as by direct debit scheduled when the return was filed.  It seems the computers are just not picking up all the payments, and I have no idea what the solution is.