Economic Impact Payment stimulus received and IRS (!) withdrawal deducted

[User FIDO 61]

Schedule C business received Stimulus and also discovered deducted Payment supposedly by IRS. On the same day, Stimulus received was $2,400 and, Payment deducted approximately $4,500. This client has/had no know delinquent outstanding anything with any relevant federal state or local government entities... 

Has anyone else gotten reports of similar happening?

[rbynaker · Accepted solution]

Knee-jerk reaction, this has got to be something like a 2019 balance due EFT or maybe a 1Q-ES 2020 payment scheduled a while ago and forgotten about?

[itonewbie]

Agree, especially since $4,500 is such a clean number.

[User FIDO 61]

These are voucher folk, handwriting and sending paper checks. This particular Partner/Preparer is paper based. 2019 is yet to be filed. 

[itonewbie]

If your client goes by vouchers, how is the IRS able to deduct anything from the bank account, absent a lien/levy?

[rbynaker]

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@itonewbie wrote:

If your client goes by vouchers, how is the IRS able to deduct anything from the bank account, absent a lien/levy?

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Also, how did the IRS get bank info for direct deposit?

[itonewbie]

I suppose the taxpayer could have submitted the direct debit info somehow.  But even then, the IRS doesn't have any authority to withdraw money from that account, using that info, and without any lien/levy.

It just doesn't add up.

[User FIDO 61]

Prior year overpayments refunded into business account supplied the account information is the theory 

New bread crumbs, all occurring the same date:

• $2,400.00 deposited
• $4,508.52 withdrawn
• $126.00 withdrawn

[itonewbie]

Get a transcript or statement for the back account and check it's really the IRS.  Just don't see how the IRS can pull funds out of the account.

Forget about the advance refund - that has no relevance to what happened to your client's account, IMHO.

[User FIDO 61]

Appreciate all the participation. I will let you know as this continues to unfold. 

[itonewbie]

Would love to hear back.  I'm curious as to what actually happened.

[User FIDO 61]

⚠️  Occam's razor strikes again. It was the previously scheduled 941 deposit.  ⚠️

Sorry that's far less satisfying than anticipated. 🤣 Cheers!  🍻 

[rbynaker]

Ah, thanks.  And the $126 was FUTA?

Edit:  I'll answer my own question.  Yes.  3 employees.  If I were in a better state of mind I would have caught that earlier!  Crazy year.

[User FIDO 61]

@rbynaker for the win, folks!

Yep. FUTA. Client pays as they go. 

Agreed - if I can remember back to when I had a "better state of mind!?"