We believe in keeping our clients informed about developments that could affect their tax situations. Recent payment processing delays at the IRS may be causing confusion and concern for taxpayers who made payments this year but are now receiving notices of outstanding balances due.
What’s Happening
The IRS has acknowledged significant delays in processing electronic tax payments, and many taxpayers are receiving unexpected balance due notices despite making their payments on time. If you’re one of our clients who has received such a notice, please don’t panic. This is a widespread administrative issue, not a problem with your payment or filing.
The agency reports that electronic payments are appearing as “pending” in taxpayer accounts even when the funds have been successfully received. In cases of checks, they may not show as pending until they are fully processed and manually entered into the system. In most cases, these balance due notices were automatically generated before the payments could be fully processed in the IRS system.
Our Guidance to You
If you receive a balance due notice but know you paid, and on time, resist the urge to make another payment immediately. We recommend first checking your IRS online account at IRS.gov/account to view your payment history and any pending transactions. If you’re uncomfortable navigating the IRS website yourself, we’re here to help. Current tax planning clients receive notice support at no extra charge.
The IRS has indicated that July 15 is its target date for resolving these processing issues. If your payment still isn’t showing as processed by that date, we can assist you in preparing a written response to the IRS notice you received. If you are not a current tax planning client, please reach out to us so we can help you select the tier of service that will be the best fit for your resolution needs.
Here’s the good news: any penalties or interest that may have accrued due to these processing delays will be automatically reversed once your payment is properly applied to your account. You won’t be penalized for the IRS’s administrative backlog.
How We’re Supporting Our Clients
During this period of uncertainty, we’re actively monitoring our clients’ situations and reaching out to those we believe may be affected. We’re also staying current with IRS updates and guidance available at IRS.gov to ensure we can provide the most accurate information as this situation evolves.
For clients who made partial payments and are genuinely unable to pay their remaining balance, we can help you explore payment plan options at IRS.gov/payments/online-payment-agreement-application or other collection alternatives that may be available through the IRS Offer in Compromise program at IRS.gov/oic.
Additional Resources
For those who want to stay informed about this developing situation, the IRS regularly updates their news releases and taxpayer guidance at IRS.gov/newsroom. You can also find comprehensive information about payment options and account management tools at IRS.gov/payments.
If you need to make a payment or check the status of a previous payment, the IRS Direct Pay system is available at IRS.gov/payments/direct-pay, though we recommend consulting with us before making additional payments during this processing delay period.
You Don’t Have to Navigate This Alone
Tax issues can be overwhelming, especially when they involve confusing notices and government processing delays. This situation illustrates why having an experienced tax professional in your corner makes such a difference. We’re here to interpret these notices, communicate with the IRS on your behalf when necessary, and ensure you understand your options.
Need Our Help?
If you’ve received an unexpected balance due notice or are concerned about your payment status, don’t hesitate to contact our office. Whether you’re a current client or someone dealing with this issue without professional representation, we’re here to help you understand your situation and determine the best course of action.
Current clients can reach us at 207-800-3198 or grow@cultivateconsulting.co. If you’re not currently working with a tax professional and need guidance navigating this or other tax matters, we’d welcome the opportunity to discuss how we can support your financial peace of mind. Book a free discovery call anytime on our website www.cultivateconsulting.co.
Remember, tax problems rarely improve when ignored, but they’re almost always manageable with the right professional guidance.
Christine Gervais
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
