IRS not cashing checks for owed amounts

Yes, I have the same problem with one trust, and my partner in the firm has a similar case. You are not alone. This seems to be an issue only with the IRS service center that processes trust tax returns.

And to add insult to injury in my case, the client just received a notice from the IRS, saying that they hadn't paid the amount due with the trust return when filed! I advised my client to simply wait - Hopefully the IRS employees will find these tax payment checks when they get back to work in their offices.

Ive got a client with a CP2000 response that was sent in with a check back in March, still hasnt cleared either...havent gotten anymore notices though.

Probably Kansas City Service Center, which I don't think has reopened.  Ogden opened partially a few weeks ago, and is making progress on 1040 returns -- so probably 1041s, also.   I would not have stopped payment on checks.  It's not that difficult to keep up with the news on what is happening at IRS, at the federal government, and around the country and world.  As mentioned, now IRS is going to cash both checks, charge a penalty for the rejected one, and take time away from helping the rest of us to sort out the mess.  

Inspector General's report at https://www.treasury.gov/tigta/auditreports/2020reports/202046041fr.pdf

says on page 13:  "As of May 20, 2020, the IRS estimates that it has received 10.4 million pieces of mail while the Tax Processing Centers were closed. This includes mail stored within its various Tax Processing Centers and in 20 semi-trailers and six storage containers housed outside these Centers.  The unopened mail includes tax returns, taxpayer correspondence, payments, and mail returned as undeliverable. Each Tax Processing Center has a mail operation that opens, sorts, counts, and routes all incoming mail and packages to their appropriate destinations. These actions were all halted when the Tax Processing Centers were closed. Furthermore, all paper tax return processing was halted. "

Yes , I have same problem , with 1041  Trust payment going to Kansas City , MO.

We have the same issue...this is what I just found:

From IRS website: https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

Pending Check Payments and Payment Notices: If a taxpayer mailed a check (either with or without a tax return), it may still be unopened in the backlog of mail the IRS is processing due to COVID-19. Any payments will be posted as the date we received them rather than the date the agency processed them. To avoid penalties and interest, taxpayers should not cancel their checks and should ensure funds continue to be available so the IRS can process them.

To provide fair and equitable treatment, the IRS is providing relief from bad check penalties for dishonored checks the agency received between March 1 and July 15 due to delays in this IRS processing. However, interest and penalties may still apply.

Due to high call volumes, the IRS suggests waiting to contact the agency about any unprocessed paper payments still pending. See www.irs.gov/payments for options to make payments other than by mail.

Thanks to all of the posters on this.  I have 4 trust checks with different fillings sent to Kansas City service center on 7/15, none have been cashed yet.

I sent in a payment via USPS Priority mail with a signature verification upon receipt required for 2019 taxes owed on a trust.  They sent me a notice saying they did not receive payment...they lost the check.  I tried calling and was on hold for 2 hours and then the call was dropped.  I stopped payment on the first check and sent a new check which was signed as received be them on August 24th 2020...it's September 16th and the check has not been cashed.  I also had to send in paperwork and proof that I sent the first payment in.  All I have is proof that I sent something and they signed for it...there's no way to prove I actually put a check in the envelope.  The IRS is trying to access a penalty for late payment so time will tell if they accept my proof and waive that penalty.  I sure would feel better if they cashed the second check!

On a personal level, I had forgotten to make a final payment for my 2020 return. I received a notice in August 2021 and immediately paid online. I, and my husband, have since been barraged with collection notices. Even after sending a timely response in October, we then received a notice to garnish our SS for payment (2 copies to each of us!).i've tried calling too many times to count and decided to sit still.  Fast forward to March 2022 the notices stopped and we finally got a letter saying ..... we're looking at this give us another 60 days.  Word is they are seriously understaffed so just hang tight and let them catch up with what they have rather than sending a barrage of more information or hounding Taxpayer Advocate offices which is also understaffed.  I say this as a former Revenue Agent, myself.