The Internal Revenue Service has confirmed widespread delays in processing electronic tax payments, creating confusion for taxpayers who are receiving balance due notices despite making timely payments. This situation presents both challenges and opportunities for tax practitioners to demonstrate their value to clients as they navigate these administrative hurdles.
The agency reports that electronic payments are displayed as "pending" in taxpayer accounts, even though the funds have been successfully transmitted through banking institutions. In many cases, notices were generated before payments were fully processed, or payments contained technical errors, or were manual checks that required additional manual handling before account updates could occur.
Guiding Clients Through Confusion
Tax practitioners should proactively reach out to clients who may have received unexpected balance due notices after making electronic payments or check payments. The key message is reassurance: clients who paid their full tax liability and on time should not respond to these notices immediately.
Instead, practitioners can guide clients to monitor their IRS online accounts through the payment activity page, which displays both payment history and pending transactions being processed. This self-service approach empowers clients while reducing anxiety about potential penalties or collection actions.
For clients who prefer not to navigate online systems themselves, practitioners can offer to check account status on their behalf or walk clients through the process during scheduled consultations. This hands-on support reinforces the practitioner's role as a trusted advisor during stressful situations.
Setting Appropriate Expectations
Practitioners should inform clients that the IRS has established July 15 as the benchmark date for resolution. If payments haven't been properly processed by then, clients can call the number provided on their notice. This timeline helps manage client expectations while providing a clear action plan.
It's crucial to reassure clients that any penalties and interest associated with these delayed payments will be automatically adjusted once the IRS correctly applies the payments to their accounts. This information can prevent clients from making unnecessary duplicate payments or panicking about accumulating fees.
Addressing Partial Payment Situations
For clients who make partial payments and cannot cover the remaining balance, practitioners should guide them toward IRS payment plan options available at IRS.gov/opa or help them explore collection alternatives mentioned in their notices. This proactive approach demonstrates value while preventing clients from ignoring notices that require genuine attention.
Strengthening Client Relationships
These processing delays offer practitioners an opportunity to showcase their expertise and advocacy skills. By staying informed about IRS operational issues and communicating clearly with clients, practitioners can differentiate themselves from competitors who may leave clients to navigate these issues on their own.
Consider sending brief email updates to affected clients, explaining the situation and your recommended response. This proactive communication builds trust and positions you as their first resource for tax-related concerns, potentially leading to additional service opportunities and referrals.
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
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