The COVID-19 pandemic has impacted entities of all types and sizes, including government agencies. In a recent announcement, the Internal Revenue Service (IRS) discussed some of the challenges they are facing during the pandemic. The IRS is currently dealing with a correspondence backlog because of limited staffing. More specifically, the backlog includes paper tax returns, along with payment checks mailed in from taxpayers with or without an accompanying tax return.

Overdue balance notices for the 2019 taxable year are still being sent to taxpayers, even to those who mailed in their payment on time, because the checks have not been processed yet. The good news for taxpayers is, despite these notices, the IRS will eventually post payments as of the date the check was received, not the date the check was processed. As a reminder, the IRS is urging taxpayers to refrain from canceling any checks and ensure that you have sufficient funds in your account to cover the check you submitted.

If you have received one of these notices from the IRS, please contact a member of your DGC client service team or Erica Nadeau, CPA, MST at 781-937-5311 / enadeau@dgccpa.com with any questions. You can also visit DGC's coronavirus web page at dgccpa.com/coronavirus which is frequently updated with new resources to help you deal with the financial impact of the coronavirus on you and your business.

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