BLACK BART Posted November 16, 2016 Report Share Posted November 16, 2016 Would like to know if anyone here has received a notice of non-payment of taxes due after sending in a balance due check at the same time they filed extended tax returns near Oct.15th. Four of my clients (and me) got such a letter last week and my franchise competitor says his guys have received many. The notices gave credit for payments made previously during the year, but not for the remaining balance due check sent in close to 10-15-16. The clients (and I) called the banks and all checks cleared on, before, or near the deadline. I sent front and back check copies to IRS but no replies yet. Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted November 16, 2016 Report Share Posted November 16, 2016 Yes. Also I have had problems from 2015 stating that they received the payment for 940 and 941 but didn't receive the reports even though they were mailed in the same envelope. I think IRS is having a computer glitch. 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted November 16, 2016 Report Share Posted November 16, 2016 The IRS has several very old computer systems that don't talk to each other. It takes awhile for any information to make it to all the systems. If you have the canceled check, relax. Don't send it to the IRS. The last thing they need is more incoming mail. Just wait a couple months. It will likely solve itself. 1 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted November 16, 2016 Report Share Posted November 16, 2016 I'm having issues with responding to IRS letters with amended worksheets And payments and clients getting their second certified letter as nothing is posted from 12 weeks ago!! Time to go on hold and call... 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted November 16, 2016 Report Share Posted November 16, 2016 Ain't it just *grand* how their lack of staff (and general incompetence among far too many employees) gets to turn into our nightmare emergency? /sarc/ Quote Link to comment Share on other sites More sharing options...
MDEA Posted November 16, 2016 Report Share Posted November 16, 2016 That is why I have my clients if they can pay money due by direct debit eliminates all letters. If they do not want to I say go online and pay the worst thing is to mail a check. Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted November 17, 2016 Report Share Posted November 17, 2016 good advice - I will advise... Quote Link to comment Share on other sites More sharing options...
SaraEA Posted November 17, 2016 Report Share Posted November 17, 2016 I too have had problems with the IRS sending notice after notice and ignoring my repeat responses. Clients aren't happy. Just helped a client who got a notice that he owed a zillion because they had no record of the withholding on his W2. As Deb suggested, a 940/941 problem? (Thankfully we don't do his employer's payroll.) As for IRS not recording payments of tax due, I find they are usually pretty good about that. When clients claimed they made an ES payment but didn't, IRS is usually right. Same with those who forgot they made a payment and get surprise refunds. I do remember a few years ago when some bank that operated as an IRS lockbox got confused when checks arrived after the deadline, even though timely postmarked. Bank employees apparently shredded them, and IRS had to scramble to discover who paid how much when. Maybe this is a repeat of that lockbox problem. In defense of IRS employees, the ones I know are well-trained in the tax code and committed to taxpayer rights. What's happened to the agency in recent years is due to a combo of self-inflicted consequences and political darts. Think of what it must be like to work at the IRS right now. Morale has to be at its lowest point ever. Congress hates you, the public has always hated you, there are not enough people to do the work so your caseload is enormous (and you're always getting nasty letters from the boss to tell you reduce it), preseason training that used to take two weeks of live classes now is offered on video so you may not think you learned what you need to know. You all know how we feel around April 10 and Oct 10--not enough hours in the day to do the work, cranky clients at that time of year, can't possibly do work and answer all the calls that are coming in. The diminished IRS staff face that scenario every single day when they go to work right now. At least we can chill after deadlines and deal with the hanging chads once we've gotten some sleep and food. IRS folks leave work in the evening with 251 files on their desk and 14 phone messages, and when they arrive in the morning those numbers have likely grown. That and the nastiness about getting the IRS commissioner (their boss) to resign have to take their toll on competence. How many of us, usually detail-oriented and determined to get every number right, get to the point late in the season when we give up caring so much? Quote Link to comment Share on other sites More sharing options...
BLACK BART Posted November 17, 2016 Author Report Share Posted November 17, 2016 Okay - Thanks All. 11 hours ago, Tax Prep by Deb said: ...I think IRS is having a computer glitch. Me too - checked with another independent yesterday - same story. 11 hours ago, Abby Normal said: ...relax. Don't send it to the IRS...Just wait a couple months. It will likely solve itself.. Yeah, I know that and you know that; problem is - the customers don't. Many things have changed about this business in the last few years, but one thing remains constant - most ordinary people are still scared to death about any notice from IRS. And they want something done about it now; not 60 days later. 7 hours ago, Catherine said: ....lack off staff (and general incompetence among far too many employees)... . 5 hours ago, SaraEA said: I too have had problems with the IRS sending notice after notice and ignoring my repeat responses. Clients aren't happy... In defense of IRS employees, the ones I know are well-trained in the tax code and committed to taxpayer rights. What's happened to the agency in recent years is due to a combo of self-inflicted consequences and political darts. Think of what it must be like to work at the IRS right now. Morale has to be at its lowest point ever... Five years ago I talked to an EA who left private practice to work for IRS; said he was astounded at the lack of tax knowledge there. Co-workers, recognizing his expertise, began asking him how to handle problems instead of consulting the clueless supervisor. A small turf war ensued and his superior soon advised "This job's not for you; you need to do something else." He resigned after four months of unpleasant treatment. 7 hours ago, MDEA said: That is why I have my clients if they can pay money due by direct debit eliminates all letters. If they do not want to I say go online and pay the worst thing is to mail a check. In the old days, if we sent the right stuff and waited long enough, problems would eventually work their way through the system. Now, I'm not so sure you can outwait them. So I've been thinking about doing it MDEA's way. Only thing, if it still gets all balled up; how can I sent them the front and back of an EF debit? 2 Quote Link to comment Share on other sites More sharing options...
MDEA Posted November 17, 2016 Report Share Posted November 17, 2016 I have sent copies of bank statements to prove direct debit.When you pay on line you receive a receipt with a tracing number. I have only had one direct debit problem when the client did not have the money in their account. 2 Quote Link to comment Share on other sites More sharing options...
BLACK BART Posted December 8, 2016 Author Report Share Posted December 8, 2016 On 11/16/2016 at 0:50 PM, Abby Normal said: The IRS has several very old computer systems that don't talk to each other. It takes awhile for any information to make it to all the systems. If you have the cancelled check, relax. Don't send it to the IRS. The last thing they need is more incoming mail. Just wait a couple months. It will likely solve itself. Well, you were right after all about those cancelled check copies I sent to IRS. Instead of hurrying things up, zeroing out the accounts, and calming the clients down, today one of them brought in another IRS letter which states: "We received one of the following items: Correspondence, Telephone Inquiry, Payment, Response to our notice, (etc., etc.). We're working on your account. In order to provide a complete response, we need an additional 45 days to let you know what action we are taking on your account...". This, of course, means nothing except the wheels are grinding at a maddening snail's pace, but it sounds ominous to the client ("What are they gonna do to me?") This...to record a payment. I shudder to think if it had been a real tax problem... Now all I have to do is pacify three more people when they get their letters.... 2 Quote Link to comment Share on other sites More sharing options...
BLACK BART Posted February 1, 2017 Author Report Share Posted February 1, 2017 Can't believe it. Same guy brings in another IRS letter about the above topic. To recap; he sent 1040 payment 10-15-16. IRS cashed check around 10-25-16. Nov. 8th they send bill saying "pay up" (same amount as the cashed check). Nov.16 I write back explaining it's already been paid (to speed things up). Dec. 6, he gets letter advising they need 45 days to resolve (this weighty matter of cashing a check). Today he brings in a 1-24-17 letter saying they need an additional 45 days to solve the mystery. Next will probably be a notice of garnishment. 2 Quote Link to comment Share on other sites More sharing options...
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