Update Regarding Erroneous IRS Correspondence And Uncashed Checks
Many people have reported receiving notices from the IRS indicating balances due for 2019 even though they had already sent payment. This is because the IRS has a massive backlog of unopened mail due to COVID-19 related closures, but it never adjusted its computer systems to stop automatically generating notices. On Friday, August 21, the IRS announced it had made the proper changes to suspend sending these types of notices while it continues to process its backlog of unopened mail.
In addition, some people have noticed that checks they had written to the U.S. Treasury still hadn’t been cashed after an extended period of time. The IRS is advising taxpayers not to cancel the checks and to maintain an adequate bank balance to cover them. If you make a mistake and don’t have enough money to cover the check amount on the date the IRS ultimately cashes your check, don’t fret. The IRS has said that, due to the delays, it would waive bad-check penalties on dishonored checks that it received between March 1 and July 15, 2020. Please note that your bank will still charge you a fee if this occurs.