The ins and outs of an uncashed tax check

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Let us understand the meaning of uncashed tax check. Basically, whenever the taxpayer files the income tax return, she has to mail the check for payment of outstanding taxes along with it. The problem is that this gets unattended by the IRS officials and therefore, there are consequences to this.

Do you think that the taxpayer is at fault here for non-payment of taxes, at least in the IRS system? Well, not really, this is more of a system failure on the part of the IRS and the tax department. The taxpayer may have rightfully send out the check along with the income tax return for payment of taxes. But since the officials have not attended to these emails and tax payment requests, it does not get reflected in the system.

What are the consequences of Uncashed Tax Check?

Holistically, one may understand that the taxpayer has done his part by sending out the check for the outstanding tax demand. However, since it does not reflect in the government system, the taxpayer is due for the payment. Such failure simply puts bad light on the taxpayer and shows him as a defaulter of tax payment. A non-payment of taxes has led to the IRS sending out notices and taking legal recourse against such taxpayers for underpayment or non-payment of taxes.

What are the things to keep in mind?

  1. Don’t use the funds elsewhere

Well, the taxpayer has done his bit by paying the taxes. However, there is very little that he can do in order to get these things checked and verified. But, the least they could do is to not spent the amount for any other purpose. The taxpayer needs to understand that these funds are not cashed out by the government temporarily, but it belongs to them so they will cash out someday.

  • Use alternative tax payment options

Online payment facility comes handy in situations like these. The taxpayer can directly pay the taxes from her checking or savings account. Alternatively, the taxpayer may also use IRS approved debit card or credit cards, wire transfer, Electronic Federal Tax Payment System (EFTPS), Electronic Funds Withdrawal (EFW) resulting in direct debit to your bank account and other online digital options.

Well, it is hard to believe that the consequences are on the taxpayer for a backlogged system failure of the IRS. There is very little that can be done as a tax payer. However, the least is to be cautious, being patient and use more electronic options to clear the taxes.

Electronic modes provide a sense of comfort to the tax payers and quick transmission of payment to the authorities. These modes are safe against theft, hacking etc., making a secured mode of payment option too. 

Got questions? Feel free to reach out to us at tax@mytaxfiler.com!

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