Electronic payment withdrawn a day late

[nancy2]

Just wondering how the electronic payment actually works.  What I mean is, whose responsibility is it once the return is filed.  I filed an Alabama trust return for someone with the correct withdrawal date.  It was withdrawn a day late and now the state has sent a notice with a late payment penalty.  Who is at fault?  The state or the software?  The federal payment was correctly withdrawn on the date indicated in the software.

[Taxtime3]

Not sure how Alabama works, but Virginia always pulls payments 1-2 days late (historically 2).  As long as the settlement date is setup for the due date (or before), it is considered timely paid no matter when the state pulls it.  I would reach out the state department of taxation and show evidence that the payment was setup to pull on the due date.  Federal payments typically come out on the settlement date .  At least that is my experience.

[nancy2]

So that sounds like you are saying that once filed and accepted by the state, it is their responsibility to take it on the correct date.  Do I understand that correctly?

The penalty is small.  So probably I will just try to remember to put the date a few days early next time.  It just makes it look bad on my end to the client... know what I mean?   

[Taxtime3 · Accepted solution]

Yes.  That is correct.  I hope that helped.