Letter 608C Received ? Addressing Dishonored Payments to the IRS
If you receive IRS Letter 608C, it means your payment (check or other commercial payment instrument) was returned unpaid by your financial institution. The IRS doesn't resubmit these payments. This article explains the next steps and your options.
The clearinghouse may or may not resubmit your payment. You have the choice to wait and see if it's resubmitted, or to make an additional payment immediately. The IRS doesn't determine if the clearinghouse will resubmit the payment.
Penalties Dishonored Check Explained
A dishonored check penalty typically applies when a check or other payment instrument isn't honored. The penalty is generally 2% of the payment amount.
However, if the payment amount is less than $1,250, the penalty is $25 or the payment amount, whichever is less. For example, if the payment was between $25 and $1,250, the penalty would be $25.
If the payment is honored after the due date, you may also incur interest and a late payment penalty.
“The IRS doesn't resubmit dishonored payments; the clearinghouse may.
IRS Guidance
Key Takeaways
Quick Actions and Important Points
Check Your Account
Ensure sufficient funds are available if the payment is resubmitted.
Review Letter 608C
Carefully review the letter for instructions and deadlines.
Consider Making a New Payment
To avoid potential penalties and interest, consider paying again.
Abatement Requesting Dishonored Check Penalty
The IRS may abate (remove) the penalty in certain situations. You can request abatement by providing a written explanation or evidence that you reasonably expected your payment to be honored.
Make this request in writing and include it with your response to Letter 608C. Send the request to the address listed on the letter.
If you placed a stop payment order on the payment, include a copy of the request with your penalty relief request.