Question about IRS Online Payment from Checking Account

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sd94070
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Joined: Sun Mar 09, 2014 2:15 pm

Question about IRS Online Payment from Checking Account

Post by sd94070 »

I trust that there are a few Bogleheads out there with plenty o' dough, and who owed plenty of taxes to the IRS in 2013. So maybe you have a perspective on my dilemma.

We underpaid. We owed tens of thousands of dollars.

So I had money wired from my Vanguard account to my checking account. And I provided the routing number and checking account number to the IRS when I e-filed.

They haven't touched my account yet -- in five days.

My accountant has no opinion on this. I called the IRS, waited on hold for 40 minutes, spoke to a woman who said it could be months but that she needed for me to speak with someone else, and then put me on hold again for 10 minutes. And...well, I needed to attend a meeting with the CMO of my company -- call me crazy.

So, does this seem unusual? What I'm trying to avoid is receiving a form letter six months from now saying I never paid my remaining amount and that I owe interest/penalties.

Thank you!
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Crimsontide
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Re: Question about IRS Online Payment from Checking Account

Post by Crimsontide »

No issue here. Of course we were not in any hurry to file, mailed the return and check on the 14th, the check cleared the bank on the 18th...
pshonore
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Re: Question about IRS Online Payment from Checking Account

Post by pshonore »

I efiled on the 13th. Printed the voucher and mailed it (only about 20 miles) with my check on the 14th, finds were taken on the 16th. I do recall in previous years it took a few more days for the withdrawal. I think if you mail the return with the check, it might them a few more days to get to it.
sscritic
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Re: Question about IRS Online Payment from Checking Account

Post by sscritic »

But he didn't pay in the sense of sending them money. He sent them account information and authorization to take the money out whenever they felt like it. I use checks, just like you do.

P.S. While they cash the check immediately, the money might not be credited to your tax bill for 8 months, and I have the CP2000 to prove it. (It was in my account, so I had credit, but it hadn't been applied to my bill.)
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leonidas
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Re: Question about IRS Online Payment from Checking Account

Post by leonidas »

I efiled thru turbo tax on the 14th and during the process I was asked When I would like my payment sent to the irs thru my checking account. I chose the 15th and the next day it was taken out. The total was 3k. Maybe there is an issue with the dollar amount? I would call the irs again.
jebmke
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Re: Question about IRS Online Payment from Checking Account

Post by jebmke »

I filed for an extension but I used EFTPS to make my payment. The debited my account on the date I requested.

Did they not follow the date you specified on the ACH form?
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
Topic Author
sd94070
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Re: Question about IRS Online Payment from Checking Account

Post by sd94070 »

Thanks for the responses all. Yes, this is the first year I both e-filed and skipped the postal service by providing my checking account routing information and checking account #. This is a pretty customary way to deposit money with companies like Vanguard. So my question is if anyone, paying extra amounts owed, has done it in this way -- and what the customary lag period has been. Thank you!
TravelforFun
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Re: Question about IRS Online Payment from Checking Account

Post by TravelforFun »

I efiled using Turbo Tax and provided my bank routing number and account number and the money was taken by the IRS within 5 days. No problems.
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HueyLD
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Re: Question about IRS Online Payment from Checking Account

Post by HueyLD »

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Last edited by HueyLD on Sat Feb 07, 2015 3:40 pm, edited 1 time in total.
Topic Author
sd94070
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Re: Question about IRS Online Payment from Checking Account

Post by sd94070 »

Thanks Huey. Accountant put the draft date as 4.11.14. But I'm nearly positive the return wasn't submitted until 4.14.14.

I have emailed the accountant and he told me not to worry.

You are correct. I need to call him. Thanks again.
jebmke
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Re: Question about IRS Online Payment from Checking Account

Post by jebmke »

sd94070 wrote:Thanks Huey. Accountant put the draft date as 4.11.14. But I'm nearly positive the return wasn't submitted until 4.14.14.

I have emailed the accountant and he told me not to worry.

You are correct. I need to call him. Thanks again.
Please report back what you find. I file about 250 returns a year. I caution my preparers to specify a date after the most likely file date. Once a client signs an 8879 I try to file it within 24 hours. If I get a reject, I always check for the ACH date before I refile later. I've always wondered what would happen if the ACH date was before the filing date but it hasn't happened yet.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
sscritic
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Re: Question about IRS Online Payment from Checking Account

Post by sscritic »

jebmke wrote:
sd94070 wrote:Thanks Huey. Accountant put the draft date as 4.11.14. But I'm nearly positive the return wasn't submitted until 4.14.14.
Please report back what you find. I file about 250 returns a year. I caution my preparers to specify a date after the most likely file date. ... I've always wondered what would happen if the ACH date was before the filing date but it hasn't happened yet.
Maybe they are waiting for the next 4/11, the one in 2015. Computers do things like that, depending on how they are programmed.
Last edited by sscritic on Sat Apr 19, 2014 3:34 pm, edited 1 time in total.
WL2034
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Re: Question about IRS Online Payment from Checking Account

Post by WL2034 »

I filed with TT, filed in March, chose the ACH payment method with bank acct # and routing #, and scheduled for 4/15. The money was transferred from my account at 5am EST on 4/15. This was mid-high 5 figures, did not have any issues.
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wilpat
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Re: Question about IRS Online Payment from Checking Account

Post by wilpat »

A long time ago (1980 tax year) I owed a large tax bill ($279,000) and it took them 29 days to cash my check!
Contrary to the belief of many, profit is not a four letter word!
2retire
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Re: Question about IRS Online Payment from Checking Account

Post by 2retire »

I use TaxAct and I always use this method of paying. When submitting the return, it also asks on what day I'd like to pay. I always choose the same day I file. This year that was 4/12/2014. I monies were taken out of my bank account on 4/15/2014.
sscritic
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Re: Question about IRS Online Payment from Checking Account

Post by sscritic »

Remember the relevant detail. He pre-dated his "check," using a date before the date he filed. If you use a date the same or after the date you filed, then you did not test what would happen to a pre-dater. Only another pre-dater can tell us what happens if you pre-date your payment.

For a paper check, there is no problem pre-dating. Write 4/11 on a check and mail in on 4/14 and there is no problem. But an ACH? How do you send money before you actually send it? That is the mystery.
tomd37
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Re: Question about IRS Online Payment from Checking Account

Post by tomd37 »

Unlike some of the other Tax-Aide preparers online here, I "suggest" to the taxpayer that they mail the check for the amount due sometime before the last day it is due using Form 1040-V. If they are insistent about allowing the payment to be debited from their account I encourage a date well after the date I expect an acceptance response back on their return. I guess we all have different ways of doing the same thing.
Tom D.
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HueyLD
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Re: Question about IRS Online Payment from Checking Account

Post by HueyLD »

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Last edited by HueyLD on Sat Feb 07, 2015 3:40 pm, edited 1 time in total.
Topic Author
sd94070
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Re: Question about IRS Online Payment from Checking Account

Post by sd94070 »

Thanks everybody.

The return was pre-dated. And the return had the checking account information.

Amount due: an EXTRA $65,000.

Next year I'm going back to mailing a check. California has a better method for e-paying, which only makes sense given the state's expertise in revenue generation (that's supposed to be a joke).

I will report back. Again, thanks.

I'm new to this forum. You folks are good people.
Calm Man
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Re: Question about IRS Online Payment from Checking Account

Post by Calm Man »

OP, I am confused. Vanguard and your bank is one issue. Regardless of how you got it to your bank (wire from Vanguard or otherwise) you should be able to see when the $ hit your bank account. The IRS electronic system works perfectly. I have used it both for refunds and amounts owed with tax returns as well as estimated payments. The money is debited from your checking account the day you specify. If it didn't happen because of misdating, I would be very persistent in calling the IRS. Your accountant's apology is worth nothing here and he/she messed you up clearly.
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theduke
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Re: Question about IRS Online Payment from Checking Account

Post by theduke »

I efiled my return in Feb and specified April 13 for the draft day from my checking account. It worked exactly as it should have.
Ignis
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Re: Question about IRS Online Payment from Checking Account

Post by Ignis »

Just to add a data point.. I filed on 04/16/14 and specified 04/16/14. They debited from my bank account on the 18th.

Off topic: I can't imagine having a tax bill that some of yall are quoting. :shock:
Calm Man
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Re: Question about IRS Online Payment from Checking Account

Post by Calm Man »

jgb wrote:Just to add a data point.. I filed on 04/16/14 and specified 04/16/14. They debited from my bank account on the 18th.

Off topic: I can't imagine having a tax bill that some of yall are quoting. :shock:
From your lips to G-d's ears. Are you planning to run for office? I will contribute to you.
dickenjb
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Re: Question about IRS Online Payment from Checking Account

Post by dickenjb »

jgb wrote: Off topic: I can't imagine having a tax bill that some of yall are quoting. :shock:
I can. The year I retired I owed $57K. This year I am getting $17K back. I never seem to get it right. But have never paid interest nor penalties due to safe harbor(s).
gkaplan
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Re: Question about IRS Online Payment from Checking Account

Post by gkaplan »

I ask that the IRS, the Franchise Tax Board (California),and the Department of Revenue (Oregon) all take the money from my checking account on the same date, but Oregon always takes the money the day after I specify.
Gordon
Topic Author
sd94070
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Re: Question about IRS Online Payment from Checking Account

Post by sd94070 »

Footnote: Got a letter from the IRS last Wednesday (while I was out of town) stating they were unable to draw from my checking account. Went to the USPS yesterday (Saturday) and sent out a check via return receipt. California apparently hasn't been able to take my money either so I'll pay in person tomorrow.

Odd since I use this method to transfer to Vanguard all the time. Thanks to everyone for their replies.
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