IRS auto debit for tax payment due

[mickey]

Three clients, whom I've set to auto debit for tax payments from their bank accounts for late March, have not had the money removed by the IRS.  

Has anyone experienced this?  

[Just-Lisa-Now-]

I did see someone else mention a similar situation the other day. but it was scheduled for April and hadnt happened ....have you called the EFW phone number and inquired about the scheduled payment?

Call IRS e-file Payment Services 24/7 at 1-888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling.

[IRonMaN]

Example number 323 of why I try to avoid electronic payments.  When the payment doesn't come out on the exact day the payment was set, why does it become a problem for the preparer?

[Just-Lisa-Now-]

Not a problem for the preparer, except it makes up look like dummies when what we tell them will happen, ends up not happening.

Hopefully people that want direct debit keep enough money in their accounts that it sholdn't be an issue if the funds are pulled later than scheduled, but you know people.....

[dkh]

I sometimes encourage electronic payments for my elderly clients that I know are forgetful.  I'd rather they bothered me about it not withdrawing in the expected time frame than helping them deal with penalties on an IRS notice because they forgot to send payments on time.  Most times they think the penalties are the preparers fault.

[mickey]

We're not trying to cancel.  The clients want to pay now but the debit isn't happening for these three.  Not sure if the IRS is holding off on debiting, or there's something wrong with the software or the back end at Proseries.

[Just-Lisa-Now-]

Call the number posted to INQUIRE about a scheduled payment....do they show it as scheduled?

[mickey]

I will do this on Monday.  

From my end, the returns and electronic funds withdrawal payment request were accepted (according to form 9325).  I can may be one fell through the cracks but for three clients the IRS didn't come in to take the money.  Odd.

[Just-Lisa-Now-]

Ive seen them take a few extra days...but youre looking at weeks not if it was schedule for March....are the all the same bank by chance?

[Carol-L]

I have the same problem with my own tax return, debit for estimated tax scheduled for 4/15 through Pro Series Basic has not occurred as of today 4/21. Return was Accepted by IRS 4/4. The bank info is all accurate.

In addition, one of my clients contacted me today that her balance due debit scheduled for 4/16 has not occurred yet as of 4/21.  Her bank info is correct and a different bank than mine.

I've been on hold with the IRS number for 45 minutes now.  Have regularly scheduled direct debits and never had a problem until this year.

[dkh]

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@Carol-L wrote:

Have regularly scheduled direct debits and never had a problem until this year.

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"This year" is exactly the problem.   There is nothing normal about this filing season.  Think of what IRS has had to deal with since January 1  -  two stimulus payouts and  The American Rescue Plan Act which required changes to the 2020 tax laws.     

Why is anyone surprised by what is happening ???????

[Carol-L]

Update,

Report from the IRS is everything is really backed up, regarding direct debits through the tax returns. EFTPS payments are going through just fine.

Regarding my personal tax situation of not having my Q1 estimate debited....while on the phone with the IRS, the Alert popped up in my Pro Series Basic titled 1040-ES Payments not being withdrawn.

"We discovered that 1040-ES Q1 Payments were not withdrawn from returns filed on or after March 25th, 2021. Returns after this date instead have the Q1 amount combined with the Q2 payment scheduled to occur on June 15th, 2021. The calculations and printed returns were correct. There was an issue with the electronic filing transmission to the IRS".

View the full Alert article in your tax software.  I went online and paid my 2021 Q1.