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March 24, 2023
Question

Why did the IRS not take the tax owed as instructed in the efiled 1040?

  • March 24, 2023
  • 3 replies
  • 13 views
The bank account was correct and there was a date provided to withdraw the funds.  Now the IRS has sent my client a demand letter for the money.     What went wrong here?
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3 replies

Just-Lisa-Now-
Intuit Community Champion
March 24, 2023

When did this NOT happen?  The client didnt notice it didnt get paid?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
March 24, 2023

The client notified me today when she got the demand letter.  I asked her to look back at her bank statement for February, particularly around the 22nd when I'd told them to take it, and she said she had been watching, and it had not been withdrawn.  It didn't happen 2/22/23.   She noticed, but kept watching, thinking it would happen sooner or later. 

dkh
Level 15
March 24, 2023

On the bright side - the client was notified before the April 18th deadline so no late payment penalties.  😁

sjrcpa
Level 15
March 24, 2023

Perhaps the bank refused the draft. 

Maybe there wasn't enough money in the account at the time?

 

P.S. IRS sends a few other letters before Notice and Demand. Client didn't read those?

The more I know the more I don’t know.
March 24, 2023

Cash in the bank is not an issue with this client.

 

Level 6
March 24, 2023

A client had a similar issue when she tried to pay IRS using her Schwab account. She ended up having to pay from a bank account.