Dear Liz: In response to a reader whose check to the IRS was stolen from the post office, you (again) warned readers that mail theft and check fraud have soared and that electronic payments are now the safest way to send money.
I’ve been making my charitable donations using qualified charitable distributions from my IRA. My brokerage does this by mailing me a check in the amount I request, payable to my charity. I then mail the check to the charity.
It seems risky, but it is the only way I can use the QCD option to donate untaxed dollars. Is there a safer way to do this?
Answer: You’ve touched on an unfortunate reality. People are being warned not to mail checks because of rampant theft, yet brokerages still rely on sending physical checks for certain transactions such as qualified charitable distributions or 401(k) rollovers.
Since you can’t eliminate the risk with electronic transfers, see if you can eliminate at least one trip through the mail. Ask if the brokerage will mail the check directly to the charity, rather than sending it to you first. If that’s not an option and the charity is local, you could hand-deliver the check.
Another possibility is to find out if your IRA offers check-writing privileges. If it does, you could write the check directly to the charity. Use indelible black gel ink, which is harder to remove than regular ballpoint ink, and consider sending the check by certified mail so you can track its delivery.
You also should closely monitor your account to make sure the check gets cashed. IRA checkwriting agreements can require customers to report missing or fraudulent checks promptly. Waiting too long could jeopardize your ability to recover a loss.
As you know, qualified charitable distributions allow people 70½ and older to transfer money directly from an IRA to an eligible charity without including the distribution in taxable income. To count for that tax year, though, an IRA check must clear by year-end. Make sure the check is sent before December to leave plenty of time for the charity to receive and deposit it.
Dear Liz: I read your advice about what to do when a refund is delayed. We overpaid our 2025 federal taxes by $16,200. It was the first year my husband was retired and we wanted to make sure enough tax was withheld from his pension.
Our professionally prepared, e-filed return should have been very simple. Yet, like your letter writer, we were at first asked to confirm our identity, then on June 1 we were told to wait two more months, and since then we’ve heard nothing.
My husband was able to get through on the phone. They apologized for “ghosting us” and told us to wait until early November, because they are investigating “income and withholdings.” Yeah, right. The Taxpayer Advocate Service did not want our case because we cannot prove a severe enough financial hardship, but this is affecting our budget. Any suggestions? Our congressman’s office never returned our message.
Answer: Try one of your U.S. senators. Like congressional representatives, they have constituent services teams dedicated to helping people resolve problems with federal agencies.
The IRS asked you to verify your identity because something about your return raised concerns about possible fraud. Your personal information may have been exposed in a data breach, your return may have differed substantially from previous years or someone else may have filed a return using your Social Security number. It’s also possible your return was simply selected for additional review.
Once you verified your identity, though, your refund should have been processed. Yours has gotten stuck in the agency’s gears somewhere, so it’s time to get help (and maybe cast a vote against your current representative in November’s election).
Dear Liz: I agree with the writer who suggested contacting elected officials for help with IRS issues. I worked for the IRS as a criminal investigator for 25 years and dealt with the majority of divisions. An inquiry forwarded by a member of Congress on behalf of a constituent is known as a “congressional.” When a congressional is received on any matter, that places it on top of an in-box and requires timely action.
Answer: Thanks for adding your experience to the discussion.
Got a question about money? You can submit it here.
Liz Weston, Certified Financial Planner, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.
Source: www.latimes.com
