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Power Member
Group: Forum Members
Last Login: 1/6/2010 6:00:00 PM
Posts: 83,
Visits: 123
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| This may be a bit outside the scope of this forum, but perhaps some of you have had the same experience.
A client inadvertently sent the California estimate to the IRS, and vice versa. Both cashed the other's check. (In fact, the IRS ink-stamped "U.S. Treasury" over Franchise Tax Board.) Client didn't find out about it right away, because the bank honored each check, and listed them on the bank statement merely as the check number, amount and date cleared. Client found out about it after tax return was filed, by an IRS notice asking for the difference and penalties.
Seems to me that in the past, when this happened, both taxing authorities stamped the date received on the others' checks, and forwarded them. Has this happened to any of you?
John Jacobson
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Power Member
Group: Forum Members
Last Login: 2/16/2010 6:30:43 PM
Posts: 144,
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| I've never know the IRS to look at the payee before cashing a check. I've heard that they once negotiated a check written to PG&E. FTB used to return checks made out to IRS. With the current budget crisis, they're probably depositing faster than ever. I've been to the office in Rancho Cordova where they receive checks. The mail with payments comes in the morning and they make the bank deposit before they open the mail for refund requests and other issues.
Mary Kay Foss
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Member
Group: Forum Members
Last Login: 12/1/2009 12:47:02 PM
Posts: 44,
Visits: 58
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have not had it happen recently...
in the past when it did happen, they returned the checks-
it seems that your client has reasonable cause for any penalties that might have been assessed. the checks were cashed inappropriately (bank might be at fault- but who wants to fight that battle?!!)-
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
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