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Level 2
April 22, 2022
Question

Updating bank info to pay tax due/estimated tax

  • April 22, 2022
  • 1 reply
  • 8 views

Hello,

I e-filed a personal tax return for a client (owes tax). Moments after e-filing, I realized that the client wanted to use a different bank account to pay her taxes. She tried to move funds to the account before the IRS would process, but unfortunately the IRS already tried to deduct the taxes from her bank account and there weren't sufficient funds. The money was still being transferred over from her savings account (it takes 3 - 5 days).

My question is: What should I do at this point now that the IRS has tried to deduct from that account and failed? She transferred the money back to her savings account (the account she originally wanted to pay from). Should I wait until she received a notice from the IRS for insufficient funds? Should I have the client and make a manual one-time payment on IRS online?

Thank you!

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1 reply

itonewbie
Level 15
April 22, 2022

There's no telling how many times or whether the IRS may attempt the withdrawal again after it was bounced for insufficient funds.  Your client can wait for the notice to arrive but interest (and late payment penalty) will continue to accrue.  You may call the e-file Payment Services at 1-888-353-4537 to find out how best to resolve this.

---------------------------------------------------------------------------------Still an AllStar