September 25, 2005

I.R.S. Claiming they never got your payment? Here's why...

Accident dumps thousands of tax payments into San Francisco Bay

Saturday, September 24, 2005
(09-24) 12:32 PDT San Francisco (AP) --

Thousands of tax payments and other correspondence sent to the Internal Revenue Service were dumped into San Francisco Bay following an automobile accident.


About 30,000 quarterly tax payments sent to an IRS post office box in San Francisco in early September were ejected into the bay from a contract courier vehicle involved in the Sept. 11 accident, the IRS said in a "problem alert" statement issued Friday.


An additional 15,000 tax payments were recovered after the accident, which occurred on the San Mateo Bridge as the courier traveled from the San Francisco post office to a check-processing facility in Hayward, the IRS said.


Most of the documents lost were Form 1040-ES quarterly estimated tax payments, the IRS said.


The agency said those affected could include residents of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Ohio, Oregon, Utah, Virginia, Washington and Wyoming, as well as anyone who mailed an IRS tax payment to the agency's San Francisco post office box between Sept. 1 and Sept. 11.


The checks believed lost represent less than 2 percent of the total payments processed by the Hayward center in September, the IRS said.


The agency advised taxpayers who might be affected to wait until the end of the month before contacting IRS through its toll-free line. That will allow checks that were processed to clear the banking system, the IRS said.


A Phoenix tax-return preparer said taxpayers who think they might be affected should be alert for signs of possible identify theft.


"I am not reassured that they are at the bottom of the bay," preparer Bob Kamman told The Arizona Republic newspaper. "IRS would like us to think so, but if the lost documents float ashore, anyone finding them may have name, address, Social Security number and bank information for someone with enough income to make quarterly payments."


The IRS said it will waive interest and penalties for affected taxpayers and plans to send a notice to taxpayers who have previously mailed estimated tax payments to the San Francisco post office box.


The notice will include specific instructions, if necessary, for sending in a replacement check within 30 days from notification, the IRS said.

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On the Net:
Internal Revenue Service: www.irs.gov

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