Always provide the reason for the payment, the form number, and tax year on the front of the check – for instance, “balance due on 2015 Form 1040” or “2016 estimated payment.”
Also include your daytime telephone number and Social Security number (joint filers should enter the number shown first on their return).
Writing separate checks will make it much easier for the IRS to identify and credit you with the payment if the checks inadvertently become prematurely separated from the accompanying correspondence or return.
Make sure that mailings to the IRS bear the proper amount of postage and show a full return address. Mail without stamps – even tax returns – goes undelivered and is returned to the sender by the US Postal Service. And mail without stamps and without a return address goes to the dead-letter office. Don’t run the risk of being hit with a nondeductible penalty for a tardy filing.
The IRS computes the penalty for a delinquent return from the date it is received, not the date mailed. Consequently, the difference between a postmark of April 18 (the deadline for 2015 returns) and April 19 can mean an extra 5 percent penalty if the return is delayed for as little as one extra day.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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