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Level 4
April 21, 2024
Question

Tax Balance dues not taken out timely

  • April 21, 2024
  • 5 replies
  • 11 views

I have had a few clients contact me about not having their IRS balance due or state balance due taken out on the date indicated on the tax return. I even had a client send me a letter from NY State claiming the payment was not made and added interest to the balance due. It was efiled and ACCEPTED by NY State on March 22. The date for removal was April 1 and still, the client did not have IRS or NY State taxes withheld. I confirmed with the client that the bank account was correct and sent the client the NY State efile acceptance. Is anyone else having this problem?

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5 replies

Jim-from-Ohio
Intuit Community Champion
April 21, 2024

For direct debits, I've seen a couple day lag before but not a lag of 21 days. Checks in the mail though I have seen delays of weeks and weeks. 

Skylane
Intuit Community Champion
April 21, 2024

First, I’d confirm my entries are correct. The only errors I’ve had with IRS or NY automatic withdrawals have been self-inflicted.

Finding none, I’d call tech support. They have additional records about the electronic filings.

If at first you don’t succeed…..find a workaround
Just-Lisa-Now-
Intuit Community Champion
April 21, 2024

If neither of them were pulled, Id have to guess a routing or account number issue (did they give you the routing number for wire transfers by mistake or something like that?)....but personally, if Id had them scheduled for the 1st and noticed on the 5th they still hadnt been pulled, I would have called EFTPS to see what the problem was, then there were still 10 more days to make a timely payment.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
jamessiteAuthor
Level 4
April 21, 2024

The client confirmed with me in person the routing and account numbers. I am more confused as to why they did not contact me when the balances were NOT taken out. It took a NY State letter for them to contact me.

IRonMaN
Level 15
April 21, 2024

Maybe a stupid question, but did they have enough money in the account on the day the money was attempted to be yanked out?

Slava Ukraini!
Accountant-Man
Level 13
April 21, 2024

I got an IRS notice that the estate owed the $105 plus interest, even though I had it debited from the bank. The next day I looked at the bank statement and it was debited, paid to "USA."

I sent a copy of the bank statement, and the account was corrected.

** I'm still a champion... of the world! Even without The Lounge.
PATAX
Level 12
April 21, 2024

Many similar posts about this issue on this forum and other forums. One of the reasons why I give them the payment vouchers and estimates and let them mail and pay it themselves. No client has ever complained.