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I.5, Processing Pending Payments During COVID-19

Aug. 18, 2020

Federal

The IRS has warned taxpayers that if they mailed checks (either with or without tax returns), the checks may still be unopened in the backlog of mail the Service is processing due to COVID-19. Any payments will be posted as the date the IRS receives them rather than the date the Service processed them.

Penalties and Interest

To avoid penalties and interest, taxpayers should not cancel their checks and should ensure funds continue to be available so the IRS can process them. In order to provide fair and equitable treatment, the Service is providing relief from bad check penalties for dishonored checks the agency received between March 1 and July 15 due to delays in this IRS processing. However, interest and penalties may still apply.

High Call Volumes

Due to high call volumes, the IRS suggests waiting to contact the agency about any unprocessed paper payments still pending. Information on options to make payments other than by mail can be found here.

Additional Information

More information regarding IRS’s progress on mission critical functions during COVID-19 can be obtained here.

UPDATE:

I.3, IRS Suspends Mailing Three Notices to Taxpayers with Balances Due

Aug. 25, 2020

Federal

The IRS has temporarily suspended the mailing of three notices to taxpayers who have a balance due on their taxes. The suspended notices are: (1) CP501; (2) CP503; and (3) CP504. However, the IRS has informed taxpayers and tax professionals that some of them might still receive these notices during the next few weeks due to delivery of existing mailings. The IRS is working to stop these mailings at their processing centers.