What It Means to Receive Notice of a Dishonored Payment from the IRS?

Did you recently receive notice of a dishonored payment from the IRS? If so, you might be a bit confused. Why did you get this notice? What does it mean?

Taxpayers receive a dishonored payment notice when they attempt to pay their taxes, but the payment gets rejected. If you are a Florida resident and this has happened to you, it’s best to contact a qualified unfiled tax lawyer.

We’ll go into more detail about this topic momentarily. But first, please know that you can contact the Law Office of Mary King if you need assistance with such tax issues. 

Unfiled tax lawyer Mary King has years of experience in dealing with all matters of tax law. Therefore, you can trust that you will receive expert legal counsel to help resolve your tax concerns. 

The Law Office of Mary King deals with the IRS on a regular basis. As such, it is equipped to assist you with all of your tax-related needs. 

Whether you are an individual or a business owner, Mary E. King can assist you in overcoming your tax concerns and will work toward helping you gain your financial freedom.

When the taxpayer’s account does not have enough funds to pay for the payment by electronic payment or check, a notice of refusal will be sent to the taxpayer. 

Dishonored payment letters inform you that the IRS did not honor your payment and that the outstanding payment is being returned to your bank. 

It is worth noting that the IRS will not resubmit any checks or commercial payment instruments. The debt will instead be considered outstanding until the issue is resolved. Therefore, it is important that you address your notice of dishonored payment from the IRS as quickly as possible.

The longer you wait, the more you will owe, as interest accrues over time. Read on to learn more about the IRS’s penalties and fees associated with dishonored payments.

In addition to being frustrating, the IRS’s refusal to honor your payments can lead to huge fines and penalties. The specific fine that you will have to pay is determined based on how much your insufficient electronic payment or bad check was.

For example, for payment under $1,250, you will owe a fee of $25 or the payment amount, whichever is lower. However, for any debts that are greater, you will eventually be fined 2% of the amount paid. 

What’s more, the IRS charges interest on this type of fine, and that interest will continue accumulating until you pay off the balance in full. More often than not, your only option to prevent the accumulation of fines and interest in the future is to send the IRS a payment. Thankfully, you can also request a penalty abatement.

You can avoid getting charged a penalty if you can prove the following:

1. You made the payment in good faith
2. You have reasonable grounds to believe you have sufficient funds in your account to make this payment. 

In order for you to qualify, you will need to comply with various reporting requirements, such as: 

1. Send the IRS a written declaration explaining why they should reconsider the penalty.
2. Submit documents proving that you have sufficient funds in your account to make the payment (bank letter or bank statement).
3. Sign, date, and mail your declaration and applicable documents to the notice’s address.

If you are unsure as to whether you qualify for a penalty abatement, please contact the Law Office of Mary E. King today to discuss your options. We can help you determine where you stand and will work with you and the IRS in resolving your dishonored payment.

As stated, a dishonored payment could mean huge fines and penalties. It is therefore in your best interest to speak with an unfiled tax lawyer at your earliest convenience. 

Please don’t hesitate to contact unfiled tax lawyer Mary King if you received a notice of a dishonored payment from the IRS. Mary King knows how to communicate with the IRS on matters such as this and can help you resolve your dishonored payment. In fact, any tax-related issues should be discussed with the Law Office of Mary King.

As an experienced unfiled tax lawyer and tax specialist, Mary E. King has the expertise you need in your corner to help you overcome your tax problems. Moreover, Attorney King works hard to resolve all legal matters quickly, efficiently, and at an affordable price. Please feel free to fill out our online contact form or call us directly at 941-906-7585.

The information in this blog post is provided for informational purposes only and is not intended to be legal advice. You should not make a decision whether or not to contact an attorney based upon the information in this blog post. No attorney-client relationship is formed nor should any such relationship be implied. If you require legal advice, please consult with an attorney licensed to practice in your jurisdiction.