As the Internal Revenue Service (IRS) continues to catch up from a backlog of unopened mail that resulted from limited staff during the COVID-19 pandemic, the agency announced that it would stop mailing overdue notices to taxpayers who sent paper returns. The temporary suspension of notices is intended to help avoid confusion for taxpayers who have already mailed in checks that have not yet been processed. The issue has affected many individuals, but specifically estates and trusts that filed income tax returns using Form 1041.
The IRS also announced that payments will be posted as of the date the payment was received instead of the date the payment was processed. As long as checks arrived before the deadline and funds are available, taxpayers will not be charged penalties or interest. According to the IRS, bad check fees will not be charged for dishonored checks received between March 1 and July 15 due to delays in processing.
For more information about making payments, visit irs.gov/payments.
The tax professionals at BSB have been following the latest COVID-19 developments to provide the most up-to-date information available. Every situation is different, but we are here to help. If you received an overdue notice or have other tax questions, contact us today.