The IRS hasn't cashed my check - what do I do?

If you're worried because you sent Uncle Sam a payment months ago and the money is still in your account, you are not alone. The IRS is still struggling to catch up after being forced to shut down earlier this year, affecting many people.

The IRS uses a “lockbox” system in which some payments are separated from the attached paperwork. The payments are processed immediately, and any accompanying return is forwarded to a different office to await processing. This explains why the IRS instructs you to use a different address for correspondence with an enclosed payment than for one without. If you accidentally mailed a payment (with or without a return) to the wrong address, it may have bypassed the lockbox and will still be sitting in a storeroom waiting to be processed. In addition, some types of returns, including 1041 returns for estates and trusts, are not part of the lockbox system and will always be processed more slowly.

If your check has not been cashed, the IRS advises patience. They have posted that your payment will be credited as of the day it was received, not when it was processed. IRS will also waive dishonored payment fees for checks received between March 1 and July 15 that we not cashed due to IRS delays. If you stop payment and send a new check, you may get hit with a late penalty. Talk to your tax professional if you are concerned.


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