The IRS held onto my check for over five months before cashing it & now it bounced?

The check was for year 2006 taxes, my taxes for that year were slightly off, by $21.20. So the IRS sent a letter in May of 2007 saying I need to pay them by May 28, 2007. I sent the check on time, then 4 months (August) later I moved to a different town and had to change banks, so I closed the account. Then they send me a letter last week, saying that they couldn't cash the check some point (but the account had money in it till I closed it on August 19th of 2007). Now I owe them roughly double???

This sounds a little unfair to me, there has got to be a solution? They can't do this, can they?

And, I realized its only $42 but I shouldn't have to pay that.

8 Answers

  • 1 decade ago
    Favorite Answer

    Now you know NEVER EVER close a bank account when you have outstanding checks.

    Lesson learned?

  • 1 decade ago

    You should not have closed your bank account while there was a check outstanding. If the bank would charge you for that, call or write the IRS and explain the situation, and replace it with a check written on your new account.

    You're right in that the IRS shouldn't have held your check and then dunned you for the consequences. Still, you should have foreseen this and forestalled it.

    Can you prove you mailed the check on time? Did you get a receipt? (I always make the IRS sign for my returns, unless they owe me and I file far enough in advance that I'll get my check before any deadline--then if it doesn't come, I can refile. E-filing makes that easy.)

    I'd say: chalk it up to experience. Just pay. Don't let the unfairness of their neglegence ruin your day; you have a life to live, and they don't care.

    Many years ago, many employees in an IRS office were caught throwing people's returns in the trash. It was the office to which I sent my returns. I wasn't effected, but ever since then, I've taken precautions to prove they received my returns. It costs a bit, but it's way cheaper than it would be if they tossed (or innocently lost) my return.

  • 1 decade ago

    Sorry, but you have to pay it. If you had properly maintained and closed the account, you would have known that there was an outstanding item for $21.20 and told the bank about that when you closed the account. They would have left that much in the account to cover the outstanding amount and you wouldn't be in this predicament.

    Source(s): I work in the banking industry. This is an every day practice. They ALWAYS ask if there are any outstanding items and virtually ALL banks have you sign a statement attesting to the amount of any outstanding items or lack thereof. You blew it, so now you get to pay up. Don't be surprised if your former bank tracks you down and bills you for a bounced check charge as well. They are entitled to that so just pay it if they come asking for it.
  • 4 years ago

    It is common banking practice to reject cheques that are over six months old to protect the payer, on the basis that payment may already have been made by some other means or the cheque may have been lost or stolen . However, this is at the discretion of individual banks. It should not be assumed that cheques in excess of six months old would automatically be rejected — the only certain way to cancel a cheque is to request that a stop be placed on it (although cheques backed by a Cheque Guarantee Card cannot be stopped). It is recommended that, if possible, customers in possession of cheques that are over six months old obtain a replacement. A cheque remains legally valid for six years.

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  • Anonymous
    1 decade ago

    Why would you close an account when checks that you wrote were still outstanding? That was not smart. It's your fault, not the IRS'.

  • Judy
    Lv 7
    1 decade ago

    Sure they can do that. You should never close an account while checks are outstanding.

  • Anonymous
    1 decade ago

    you should make sure all your check clear before you close an account.

  • 1 decade ago

    Just one of the many things about our govt. that suck. Your screwed. Nothin you can do. :'(

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