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

Anonymous
Not applicable
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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11 Comments 11
Just-Lisa-Now-
Level 15
Level 15

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


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
sjrcpa
Level 15

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.
Anonymous
Not applicable

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particularly around the 22nd when I'd told them to take it, and she said she had been watching, and it had not been withdrawn.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. 

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Anonymous
Not applicable

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

 

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Anonymous
Not applicable

Hadn't considered the bank refused the draft.   She should call the bank and ask.  Good idea.

 

Anonymous
Not applicable

The 22nd of February was only a month ago.   Today's letter was the first she received.  

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Anonymous
Not applicable

I just thoroughly re-read the IRS letter.  It says, "We reviewed your account and found that misapplied payment(s) totalling $3,015 (the amount owed).  We have adjusted your account to correct this error, and as a result you have a balance due of $3,015."  

That sounds more like the bank refused the draft.  I've asked the client to call the bank and ask tomorrow.

Thank you for your thoughtful questions tonight  

Anonymous
Not applicable

missed a word... the IRS letter said "WE misapplied payment(s) totalling $3,015."   

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Just-Lisa-Now-
Level 15
Level 15

well where the heck did they apply them to?    I hate IRS letters!


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
dkh
Level 15

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

Norman2001
Level 7

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.