Tuesday, November 2, 2010

I Paid My Taxes But The IRS Says I Didn’t!

Sometimes people pay their taxes on time but the IRS says they didn’t. This is a result of the IRS not “posting” the payments correctly on their computer. You should always write on your checks your name(s) as they appear on your tax return, Social Security number(s), form you are paying for, i.e. “1040” if paying with your return or “1040ES” if making estimated tax payments, and the year you are paying for, i.e. “2009” if paying with your 2009 return or “2010” if making estimated tax payments with the 2010 voucher. That’s probably the biggest error in posting that occurs- the payment is applied to the wrong year.
So if you receive a notice from the IRS saying you owe taxes that you think you paid here’s what you do:

Call the IRS right away and tell them. Get the cancelled checks showing all of your payments. Make copies of the front and back of each check. Then send them to the IRS with a letter explaining what happened.

2 comments:

Neil said...

Calling, writing, and sending the cancelled check doesn't help. I am in this situation right now and I had all the proper information written on my check. They simply didn't credit my account. All they do is put a hold on your account for a few weeks until they "research" the matter. Then after the few weeks is over, they send another notice with even higher interest and penalties. I fear I'll eventually have to apply for Collection Due Process. They just seem unable to correct the simplest problems with their system and the taxpayer has to deal with the mess.

Anonymous said...

Same here. Filled out 1040ES correctly and put all of the right info on the check as we have done for years, and they put the money into the wrong year, now we are having to go through the appeals process, as they have rejected all efforts to drop the penalty. They even sent a levy letter in the middle of it all.

Very frustrating to be abused like this, especially when its due to an IRS mistake.