Did your third-quarter estimated tax payment for Uncle Sam wind up in the San Francisco Bay? It's quite possible.
In the early morning hours of Sept. 11 this year, a contract courier for the IRS got into an accident on the San Mateo Bridge, and about 30,000 payments ended up in the San Francisco Bay. Most of the payments now sleeping with the fishes are for estimated taxes, but other payments mailed to the IRS at the San Francisco post office box (Box 510000) could also be affected.
This is not a small deal. Taxpayers living in 13 states could be affected. If you live in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Ohio, Oregon, Utah, Virginia, Washington, or Wyoming, your estimated tax payment could have ended up as guppy food. The IRS has narrowed down the affected payments to those mailed to the San Francisco P.O. box between Sept. 1 and Sept. 11.
So what can you do if you think you're one of the unlucky few whose payments ended up in the bay? Obviously, check your bank statement first to make sure that your IRS payment has cleared. Don't laugh -- you'd be surprised how many people don't balance and/or reconcile their checkbooks on a monthly basis. This simple step could save you a lot of anxiety.
If your payment hasn't cleared the bank, the IRS can help you with your search. Call the IRS on its toll-free taxpayer assistance line at (800) 829-1040. Taxpayers who contact the IRS will receive instructions regarding how and where to send a replacement check. It appears that the IRS will waive interest and penalties for affected taxpayers. Still, this may not be as pain-free as it sounds. The IRS assistance line is certainly helpful, but you'll likely have to remain on hold a while. Make sure you have a good book to keep your interest while you listen to the "hold" music.
Additionally, the IRS intends to send a notice to potentially affected taxpayers who have previously mailed estimated tax payments to the San Francisco post office box. The notice will include specific instructions for sending in a replacement check. Once you receive this notice, you'll then have 30 days from the notification date to send a replacement check without incurring any penalties or interest.
If you live in one of the potentially affected states, and may have mailed in a now-waterlogged tax payment, take the time to double-check your bank statement. If you wait until you file your tax return to discover that your estimated tax payment wasn't received or deposited, you might find yourself soaked with late payment penalties and interest.
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