What to do if IRS did not take your money?

[Texas Proud]

I do not remember reading about this in other threads....

I filed my sister's tax return in early April. We said to take the tax due (over $3K) out on Apr 7th. Sis called today and said that they have not taken out the funds.

So, looked back on TT and it says that the return was accepted by the IRS. Had sis look at return and verify that we had the correct numbers for the bank. Today she went into the bank to have them check to see if it was taken out and she just missed seeing it. It had not be taken out.

Now sis wants to know what to do... I actually do not know what is the best way to approach this.. she does not want to get hit with failure to pay penalties or even interest... I do not think she would get penalty but think interest if a possibility...

Anybody have this happen to them? What was the final outcome?

 

[JackJester]

This just happened to us. We used efile back in February and the return was accepted. We entered our bank account info for the IRS to make a withdrawal. Nothing happened on the date we had entered for the withdrawal to occur. So today we looked at the efile form and there was a checkbox that you had select to agree for the withdrawal to occur, even though all the bank info was entered. The checkbox was unchecked. So what we did was go to ID.me and reset our password (which we had forgot) and was able to make the payment that way. We reentered our bank info and it was easy. Got a confirmation email from the IRS too within a couple of minutes.

 

[Irishgirlyc58]

I’m having the same issue with my mom’s taxes. I submitted them for her with her approval. Bank information was submitted as well. This was April 11 and taxes have still not been taken out. The concerning part for me is that she owed both fed and state taxes and neither have been deducted.
I double checked and the returns have been accepted. No other correspondence. But how could both be held up.
She doesn’t have an ID me account. I’m not sure what to do other than mail a paper check and then hopefully it all shakes out.

I filled my own taxes on April 14 and submitted the payment info. Those were deducted from my account the next day.

Both filed through turbo tax.

 

[Texas Proud]

OK... just looked at the return and where the tax due amount is located the account number was not listed...

It shows in the instructions that we elected to have them take out the money and even shows the account number... but not on the actual form...

Will get sis to write a check and mail it in...

 

[Dtail]

Slightly different scenario.
Filed 2 tax returns in early March with next day fund withdrawal instructions. Funds weren't taken out until April 15th.

 

[JoeWras]

It will be interesting to see if there are any penalties/interest in these scenarios. When I goofed up my tax a few years ago and amended in May, I got charged interest for every day beyond April 15, but no penalty.

 

[sengsational]

If they didn't pull the funds, I'd print out the voucher and mail a check.

 

[Texas Proud]

Well, I did look deeper and found that the routing and account number were NOT on the tax return...

They ARE on the cover letter telling us what to do...

We are doing what sengsational said... I did the work last night to print the voucher and told my sis this morning... I am going to attach a letter explaining what we did etc and send a copy of the cover letter showing the info we thought they received. We will ask that no penalty be charged but of course they will charge interest...

If you are in this situation, look at the actual tax return page to see if it has the info... I would put this in a TT problem as this should never happen with proper programming...

Thanks for the help...

 

[Irishgirlyc58]

I just looked at the top of the filing page and it says "you are paying by check". I obviously did not notice this. I put in her account routing and number information into Turbo Tax just like I did with my return. Not sure why it flipped to paying by check.
I'm annoyed at myself for not noticing this before but also at TT.

Writing a letter is a good idea. My mom is 95 surely that gets you some consideration!
I do understand that she will pay interest but it won't be that much-she only owed $750.

 

[cathy63]

Well, I did look deeper and found that the routing and account number were NOT on the tax return...

They ARE on the cover letter telling us what to do...

We are doing what sengsational said... I did the work last night to print the voucher and told my sis this morning... I am going to attach a letter explaining what we did etc and send a copy of the cover letter showing the info we thought they received. We will ask that no penalty be charged but of course they will charge interest...

If you are in this situation, look at the actual tax return page to see if it has the info... I would put this in a TT problem as this should never happen with proper programming...

Thanks for the help...

When you owe money, the routing and account numbers do not appear on the tax return itself. Lines 35b and 35d are only filled in for refunds, not payments. If you read the 1040 instructions, that is how the form is supposed to be used, and all software does it that way. The IRS will reject e-files that have those fields filled in if there's no refund due. The direct debit is setup as a second transaction in a separate transmission from the e-file itself.

If you use the desktop version of TTax, the first page of the Federal return should look like the attached screenshot. (I don't know what the web version output looks like, but hopefully it's the same.) That will show you exactly what you entered for the routing and account numbers. If those look correct, then the first thing you should do is call the IRS and ask if they have a pending payment for the primary SSN on the return. The phone number to call for payments is 888-353-4537.

If the IRS doesn't have a pending debit, then Direct Pay, which you can access by going to irs.gov and clicking on Make a Payment, will be the fastest way to get the money to them. You do not need an ID.Me or IRS account to use Direct Pay. Printing a voucher and mailing a check also works, but it takes longer due to the mailing time.

 

[Texas Proud]

HECK... you are right... my return has Xs and they took out the money...

Well, will see what we can do.. THANKS..

 

[wrigley]

Just wait. They'll take it eventually. Happened to me a couple years ago. I had proof when I told them to take it.

 

[Texas Proud]

That is what my sister has asked... but we will call them and find out what they want..

Did they charge you interest for paying late?

 

[gauss]

I don't think, by law, that the IRS can waive any interest due. Penalties - yes they have discretion, but not interest. That, at least, is my understanding.
-gauss

 

[corn18]

I had this issue last with my state taxes and got nervous so I paid them again with a check. Turns out the original payment went through eventually. They sent me a check in June for the double payment.

 

[MarieIG]

When I filed an amended return a few years ago, probably around the end of April due to a 1099 about which I forget, they charged me a few dollars in interest, but no penalties.

 

[Texas Proud]

I don't think, by law, that the IRS can waive any interest due. Penalties - yes they have discretion, but not interest. That, at least, is my understanding.
-gauss

It is what I understand also... not that worried about the interest but IIRC the penalty is 5% a month...

But even then she owe about $3500 so not a big deal..

 

[Irishgirlyc58]

Interesting development. My mom just called and she got a letter from the IRS today saying that her account could not be located for payment.
Which is different than TT said.
I’m on my way to her house to make a direct payment and get this business over with.

 

[nwsteve]

This just happened to us. We used efile back in February and the return was accepted. We entered our bank account info for the IRS to make a withdrawal. Nothing happened on the date we had entered for the withdrawal to occur. So today we looked at the efile form and there was a checkbox that you had select to agree for the withdrawal to occur, even though all the bank info was entered. The checkbox was unchecked. So what we did was go to ID.me and reset our password (which we had forgot) and was able to make the payment that way. We reentered our bank info and it was easy. Got a confirmation email from the IRS too within a couple of minutes.

Don't feel too bad, my "professional" cpa accountant made the same "whoops". Fortunately, I caught early and sent $ via EFT. Accountant already volunteered to pay late paymt/interest

 

[YellowSubmarine]

The IRS sent me a notification/email stating that funds will be removed about seven days out. (They also present the last day to cancel the transaction/withdraw). Also I never wait for the last day as I give it five day lead time. Hence that lead time and the IRS notice gives me the cushion to correct errors.

 

[NeilDH]

This doesn’t apply to this case or TT e-filing, but I had funds not withdrawn for estimated payments once because I called an account a savings account when it was technically a checking. You don’t get a notice until well later (though I had noticed the absence of withdrawals in the bank account), so then penalties applied. Another thing to be careful of.

 

[audreyh1]

Wow, how confusing.

I’m glad I schedule payments independent of my tax return. And I schedule a few days ahead.

 

[aja8888]

Wow, how confusing.

I’m glad I schedule payments independent of my tax return. And I schedule a few days ahead.

I just use the one time RMD pull in December and have enough withheld for income tax based on my well estimated income. No more EFTPS for me.

 

[audreyh1]

I just use the one time RMD pull in December and have enough withheld for income tax based on my well estimated income. No more EFTPS for me.

Do you get it perfect in Dec? Refunds or apply to next year’s estimated taxes? It’s always something.

 

[aja8888]

Do you get it perfect in Dec? Refunds or apply to next year’s estimated taxes? It’s always something.

I got very close and overpaid by $280.00! I had them send me the refund. For years I used EFTPS.