August 27, 2020 …

If you mailed in your taxes and still got a letter from the IRS that you haven’t paid, no need to panic, there is a reason. Since the outbreak of Covid-19, the IRS is sitting on a backlog of millions of pieces of unopened mail.

Just last Friday, after much complaint from taxpayers and lawmakers, the IRS agreed to stop sending notices about unpaid taxes while it works through the backlog – it’s so huge that there a trailers – filled with unopened mail – parked outside IRS facilities.

Per IRS, it is making significant reductions in the pile of mail as many of its employees have returned to work. The agency reinstated that the payments in the unopened mail will be posted and credited on the date it received the mail, not the date it opens and processes the payment. That’s a relief!

The IRS makes the following recommendations:

  • If you did receive a CP-14 letter (unpaid tax notice), the IRS recommends you respond to the letter promptly.
  • Do not cancel your checks.
  • Make sure funds are still available in your bank account to cover your IRS payment to avoid being charged potential penalties and interest for returned “non-sufficient” funds (although the IRS said it will waive bad check penalties for dishonored checks received between March 1 and July 15, 2020).

If you have any questions or need help, give us a call. We are in your corner!

Team Legacy CPA
(541) 326-0993