IRS has not deposited 1041 payments yet

Technical topics regarding tax preparation.
#1
Wiles  
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5073
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CA
Two clients sent me notices from the IRS for their 1041 returns showing balances due, plus penalties and interest.

Both clients paid these balances - One on July 7th, the other July 15th. Checks were mailed to Kansas City.

Is anybody else experiencing this? Is the Kansas City office still shutdown?
 

#2
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43
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16-Jul-2018 8:34am
Location:
IL
Same issue here, also with the KC office. In my case, the 1041 was extended so I advised the client that we hold the return for e-filing until the check is cashed.

Seems like this is impacting some of the service centers more than others.
 

#3
Shoebox  
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8
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11-Jan-2016 10:57am
Location:
Charleston, South Carolina
I have a similar problem. 1041-V mailed to Ogden around 07/05.
When I spoke to PPL, rep simply stated that they are WAY behind on opening mail and to give it a little more time.

Balance due notices are auto-generated without considering unopened mail.

Not sure how reliable.... but that's what I was told.
 

#4
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400
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19-Nov-2014 5:47pm
Location:
USA
We have a client that wrote checks for about 10 trusts. Most of the balance due amounts were a couple hundred dollars, all of which were cashed. The one trust that made a $175k payment hasn't been cashed yet.

I called the IRS and they said it could be in "inventory."

Not helpful when the client didn't send certified mail...
 

#5
Noobie  
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1134
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22-Apr-2014 1:35pm
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Jacksonville, FL
I called in, and they said they are 9 months to a year behind on opening some types of mail.
 

#6
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22
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17-Jun-2016 9:19am
Location:
NJ
Same problem here - 2 payments using 1041-V, 2 separate trusts, both mailed to Kansas City in May. Checks not cashed yet, just got past due notices from IRS. So glad I saw this, now I know I'm not the only one...
 

#7
irc162  
Account Deactivated
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384
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5-Jan-2015 5:34pm
How are you responding to the past due notices? Is it necessary to call to get the IRS to back off on the collection of the amount due? Or will the IRS simply tell you tht they are behind on their mail and leave it at that without doing anything to block collection efforts for the individual trust? I would hate to go through the process of getting a power of attorney only to be told that the IRS is backed up.
 

#8
Wiles  
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5073
Joined:
21-Apr-2014 9:42am
Location:
CA
I am telling my clients to just wait another month. We don't have to be concerned until the IRS sends the 3rd letter. By then, this issue should take care of itself.
 


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