We are experiencing increasing “lost” payments to IRS mainly pertaining to payments for Income Taxes.

Payroll and business tax payments are being made without a hitch but Estimated Tax Payments and payments due on your personal tax returns seem to be disappearing into limbo.

Recently, one taxpayer made a six-figure payment and wrote the spouse’s social security number on the check.  When the taxpayer kept getting tax due bills, we looked into it and found the check was sitting in limbo and not credited to anyone.  How large checks to the IRS can get “lost” is a mystery.

We also have had issues with taxpayers making payments on-line.  These payments can easily be routed to the wrong tax period or tax account.  We strong urge our clients to continue to write physical checks and not use the IRS on-line service for tax payments.

The best practice whenever you owe money for personal taxes whether for a tax due or for an estimated tax payment is to write a physical check, write the first taxpayer’s social security number on the check, write the type of tax you are paying and the tax period you are paying on the check.  Photocopy the check and mail it certified to be on the safe side.

The above “best practice” can save a lot of time and grief if your payments due not match up with IRS records.