If you live in the New England area, double check any payment you made to the IRS was cashed. Seems a subcontractor either lost or intentionally destroyed up to 40,000 returns.

The IRS has declared a grace period for anyone affected. They will ask you to stop payment on your previous check and mail a copy of your return and a new payment to them. If you paid by money order, you will need to check with the company which issued the money order to see if it was cashed. You can file for a refund of the cost of stopping payment on a check.

Apparently only payments are affected, not refunds, as refund requests went to a different address.

If you think you are affected, contact the IRS at 800-829-1040 or IRS, P.O. Box 9936, Andover, MA 01810.

Unless action is taken, you may be fined for failure to file a tax return or make payment, included estimated taxs.

-- Ken S. in WC TN (scharabo@aol.com), August 30, 2001

Answers

Thanks for heads up Ken; I don't live in the affected area, but it still pays to check anyway. You would think that someone in the IRS would at least inform the newsmedia of the snafu.

-- j.r. guerra (jrguerra@boultinghousesimpson.com), August 30, 2001.

I always send my returns and $ registered mail, return receipt requested. I get my return receipt that has been rubber stamped. Hope this puts the burden of proof on them. Probably not.

-- Belle (gardenbelle@terraworld.net), August 30, 2001.

Belle, I do that too, because my dad did. One time, he did have to prove that he had sent his forms and payment on time. He had the hassle of producing the green proof card, stopping payment on his first check, and resending the forms and a new check. But they couldn't penalize him, because he had proof they had received it. So when I started doing my own taxes, I sent everything certified too.

-- Joy F [in So. Wisconsin] (CatFlunky@excite.com), August 30, 2001.

By the way, taht facility was in Pittsburgh (Mellon Bank)

-- Brendan K Callahan (Grinnell, IA) (sleeping@iowatelecom.net), August 30, 2001.

While we are on the subject of the IRS, this is concerning the rebate checks. I recently heard that some of them have been bouncing. Anyone know if there is any truth to this and if so was it an isolated case or several across the USA?

-- Michael W. Smith in North-West Pennsylvania (kirklbb@penn.com), September 03, 2001.