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IRS Tax Problems: Incorrect balance due notices

By
Real Estate Attorney with Rego Tax Law Cal Bar #201054

San Mateo, CA:

IRS Payment Processing Delays: What Taxpayers Should Know

The IRS has acknowledged a delay in processing some electronic tax payments, which may result in taxpayers receiving balance-due notices—even when payments were made on time. This issue primarily affects those who electronically paid the full amount due from their tax return. In many cases, the IRS received the payment, but it has not yet posted it to the taxpayer’s account.  A manual entry process is being developed to override the system errors.

If you paid your taxes on time and received a balance-due notice, there is no need to call the IRS right away. The IRS advises to wait until after July 15, 2025 to take further action. Any penalties or interest that the IRS added in error will be adjusted once your payment is correctly applied.

As a tax attorney, I regularly monitor clients’ IRS tax transcripts for discrepancies like this—often catching issues before a notice (or AUDIT) is even sent to the taxpayer. While this situation is widespread and temporary, it highlights the value of proactive tax account monitoring to avoid unnecessary stress and escalation.

If you’re concerned about notices or want peace of mind year-round, consider setting up IRS account monitoring through a trusted tax professional.

Kevin Rego

Law Office of Kevin Rego

www.regotaxlaw.com

650.933.5222

Disclaimer: The information provided is intended to provide a general overview of the topic presented.  It is not intended to be a legal interpretation of your individual tax or legal situation.  If there is a conflict between the information provided and any legal authority implementing or interpreting the topic, the legal authority shall prevail.  Always seek legal advice from a licensed attorney.  This article does not in any way establish an attorney-client relationship.  That relationship can only be accomplished with both parties signing a mutual, written agreement.

 

Posted by

Kevin Rego

Tax Attorney

San Mateo, CA

www.regotaxlaw.com

650.933.5222

Comments(4)

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Dennis Neal
Exp Realty of Southern California, Inc. - Big Bear Lake, CA
Your Home Sold in 21 Days or We Sell It For Free

This is incredibly important information, Kevin! Thanks for bringing attention to these IRS payment processing delays and advising taxpayers on the best course of action. Your emphasis on proactive tax account monitoring truly highlights its value in avoiding stress and potential issues.

Jun 20, 2025 04:06 PM
Kevin Rego
Rego Tax Law - San Mateo, CA
IRS Collections Representation
Thank you Dennis!
Jun 20, 2025 04:26 PM
Gwen Fowler SC Lakes & Mountains 864-710-4518
Gwen Fowler Real Estate, Inc - Walhalla, SC
Gwen Fowler Real Estate, Inc.

They do not seem to have a problem processing my deposits and checks.  That department knows just what to do.

Jun 21, 2025 06:16 AM
Kevin Rego
Rego Tax Law - San Mateo, CA
IRS Collections Representation

So true!

Jun 21, 2025 06:24 AM