---
title: BEWARE OF IRS PENALTY NOTICES DEMANDING PAYMENT OF TAXES ALREADY PAID!
description: IRS has amassed up to 12 million pieces of unopened mail, which has resulted in notices of unpaid taxes and/or penalties even though payment has been made.
image: https://info.mooredm.com/hubfs/irs%20stoplight_rsz%20for%20blog.jpg
---

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August 20, 2020

# BEWARE OF IRS PENALTY NOTICES DEMANDING PAYMENT OF TAXES ALREADY PAID!

![topicIcon](http://www.sparkreaction.com/hubfs/Oceania%20Theme%202016/Images/topicIcon.png) [Tax](https://info.mooredm.com/blog/topic/tax), [COVID-19](https://info.mooredm.com/blog/topic/covid-19)

[![BEWARE OF IRS PENALTY NOTICES DEMANDING PAYMENT OF TAXES YOU HAVE ALREADY PAID!](https://info.mooredm.com/hubfs/irs%20stoplight_rsz%20for%20blog.jpg)](https://info.mooredm.com/blog/beware-irs-penalty-notices)

A byproduct of the coronavirus pandemic is that the IRS has amassed up to 12 million pieces of unopened mail. This has resulted in notices (some automatically generated) of unpaid taxes and/or penalties even though a check has been sent to the IRS but has not been properly processed. We are especially seeing this issue related to the Kansas City service center, but are also experiencing it with other service centers.

The problem has become so bad that Richard Neal, Chairman of the House Ways and Means Committee, has asked the IRS to stop sending notices to taxpayers about taxes due until the agency gets through it backlog. Chairman Neal has also asked the IRS to create an online portal so taxpayers with balances due can alert the IRS if they have already submitted their taxes since the beginning of March. The IRS has not responded yet to this request.

**Do Not Pay a Penalty Notice Just Because it is a Small Amount**

In some cases, taxpayers may be tempted to just go ahead and pay the penalty because it is a small amount and they are intimidated by an IRS Notice. You should consider contesting the notice if payment has been made because that may eliminate a chance for a future abatement of penalties that might be needed in a more critical situation. There is a provision that often applies where a taxpayer can have a penalty abated if the taxpayer has not had a previous penalty situation. You do not want to give up your free “get out of jail card” from the IRS over an error they made.

This problem was anticipated by many when the IRS laid off many of its employees and shut down its offices because of the Covid-19 pandemic. The National Taxpayer Advocate, Erin Collins, highlighted this issue in her annual report to Congress back in June.

If you have a question about an IRS Notice requesting payment or asserting penalties, you should contact your tax preparer before taking action. We are dealing with this issue with our clients and are available to discuss our experience with you in dealing with this situation. Call your [Moore Doeren Mayhew contact](https://www.mooredm.com/people) or [contact us](https://info.mooredm.com/contact-mooredm).

![Jeff-McCann-1477](https://info.mooredm.com/hs-fs/hubfs/Jeff-McCann-1477.jpg?width=100&name=Jeff-McCann-1477.jpg)

Jeffrey M. McCann

![Mia Yun 2018](https://info.mooredm.com/hs-fs/hubfs/Mia%20Yun%202018.jpg?width=100&name=Mia%20Yun%202018.jpg)

 

Written by   
[Mia Yun, CPA](https://info.mooredm.com/blog/author/mia-yun-cpa)

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