ALERT: The IRS May Have Lost Your 3rd Quarter Estimated Tax Payment

The Internal Revenue Service has acknowledged the loss of 30,000 - 45,000 3rd quarter estimated tax payments for taxpayers in 13 states.

Residents of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Ohio, Oregon, Utah, Virginia, Washington and Wyoming that mailed an estimated tax payment to the IRS San Francisco post office box between September 1, 2005 and September 11, 2005 may be affected.

If your payment was mailed to the San Francisco post office between the dates listed above, and your check has not been cashed by September 30, 2005, it is likely that your estimate payment was among those lost.  The IRS is sending notices to potentially affected taxpayers, but as the list may not be all-inclusive, we recommend checking with your bank to verify that your check was deposited. 

INSTRUCTIONS FOR AFFECTED TAXPAYERS:
For estimates lost, the IRS is waiving the penalties and interest as long as the estimated payment is re-sent within 30 days of receiving notification.  For those that do not receive notice, it is unclear when the 30-day clock begins running.  But, given that taxpayers were requested to wait until September 30 before determining that payment was lost, penalties and interest will not be assessed if the postmark is no later than October 30, 2005.  Longer if notified after September 30.

The IRS can be contacted toll-free at 1.800.829.1040.  Likewise, if you have any questions or concerns, or would like to have new estimate vouchers prepared, please contact the professionals at Smith, Lange & Phillips LLP today.

WHAT HAPPENED?
On September 11th, a contract courier transporting the estimated tax payments from the San Francisco post office to a processing center in Hayward was involved in an accident on the San Mateo Bridge.  Most of the estimated tax payments on board were ejected into the San Francisco Bay and were not recoverable. 

Smith, Lange & Phillips LLP