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IRS Mail Backup Leads to Extended Payment Dates

An unforeseen consequence of the COVID-19 pandemic is pushing the IRS due date for some payments back a bit. The Internal Revenue Service is delaying the due dates on some of its paper balance-due notices because the IRS wasn’t able to mail the preprinted notices due to office closures.

As the IRS reopens its office locations, the notices will be delivered to taxpayers over the next few weeks, so some of the notices will contain due dates that have already passed.

The agency says it would take too long to reprogram IRS systems and then generate new notices, so the IRS is instead including an insert explaining that the due dates printed on the notices have been extended.

Don’t panic!

“Due to the challenges of the ongoing Coronavirus Disease 2019 (COVID-19) Pandemic, we were unable to mail the notice included in this envelope on the date listed on the notice,” the insert reads. “In addition, the date on the notice by which you are asked to pay may have already passed by the time you receive it. Do not be concerned about these dates.”

The insert stresses, “You have additional time to pay the amounts shown on your notice to avoid incurring additional liabilities.”

The new payment due date will be either July 10, 2020, or July 15, 2020, depending upon the type of tax return and original due date. The insert outlines the correct payment due dates:

“A. If the amount due on your notice is for an income, gift, estate, or Form 990-PF or Form 4720 excise tax return that was due on or after April 1, 2020 and before July 15, 2020, (such as a Form 1040 normally due April 15, 2020), the Treasury Department and the IRS postponed the deadline for making your payment to July 15, 2020. If the amount due (as provided on your notice) is not paid by July 15, 2020, penalty and interest will begin to accrue after July 15, 2020. To avoid penalty and interest, pay the amount due by July 15, 2020."

"B. If the amount due on your notice is for a return that was due before April 1, 2020, or an employment or excise tax return due on or after April 1, 2020, you will not be charged additional penalty or interest if you pay the amount due (provided on your notice) by July 10, 2020.If taxpayers have questions about their balance due, they should visit the website or call the phone number listed on their printed notice.”

If taxpayers have questions about their balance due, they should visit the website or call the phone number listed on their printed notice.

The IRS cautions, however, that phone lines are still very busy as the IRS works to ramp up its operations.

SourceIRS Statement on Balance Due Notices

Bob Williams

Forget genes; I’ve got words in my DNA. Communication has been part of who I am nearly all my life. From a long career in radio news to another one in newspapers – and a University of Georgia journalism degree sandwiched between the two – language has been my life. I’ve also been fortunate to have learned the tax business from the ground up here at Drake, starting with 1040.com online forms some years ago before moving on to work on the Web. In all things tax-ish, we aim to give you tools you can use.

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