IRS Payments are Processed Slowly
What’s Up with the IRS???
We have all seen (or are experiencing) businesses that have had to cut back on their operations. Well, the IRS is no exception. While the IRS was able to receive and accept returns that were filed by taxpayers, they apparently haven’t been able to process the payments of tax due that were paid by check with those returns. Many taxpayers are receiving IRS Notices (CP161) notifying them that they have tax due with the return, when in fact the taxpayers mailed their payments but the IRS apparently hasn’t had a chance to open the mail and cash the checks yet. If you have payments due to the IRS on July 15 (whether tax due with your 2019 return or 2020 quarterly payments), we suggest that you consider making your payment electronically rather than sending checks.
It’s not just taxpayers who owe money who are frustrated – many taxpayers who have refunds coming have been waiting an inexplicably long time, given that it should be possible to process returns and generate the refunds electronically. However the IRS just announced good news for these taxpayers – they will receive interest on refunds for the period from April 15, 2020 until the refund is received. (It might be paid separately from the refund itself.)
Unfortunately we have no answers (and probably neither does the IRS) as to how long it will take the IRS to get the payment situation straightened out, or to clearing out their backlog of refunds.
For more information or a discussion on how this may impact you, please contact your BNN advisor at 800.244.7444.
Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, investment, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.