Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
- Posts: 27
- Joined: Thu Apr 19, 2018 9:35 pm
This being my first post, I wanted to preface by saying that I'm a long-time reader, and pass along my thanks to the community for all the knowledge I've gained.
Unfortunately I think I've done something dumb:
- I recently paid estimated taxes for the 2018 tax year (1040ES) because of a one-time windfall that I received early this year.
- I made this payment online through directpay.irs.gov.
- I noticed that the money hadn't been taken out of my account after a few days, so I looked up the status. The status is "Returned".
- I suspect that I entered an incorrect bank account/routing number when making the payment. It was late at night, and I likely just read the numbers wrong from my checkbook.
- Not sure if this matters, but I was making the entire year's prepayment in one shot, because I'm lazy and didn't want to deal with scheduling quarterly payments.
- I've been reading about a 2% "bounced check" penalty that the IRS may impose. Do you think that will apply to this?
- If the penalty does apply, do you think I'd be able to appeal it?
- Is there anything I should do, beyond just waiting for the failed-payment letter to come?
The 2% is a big amount (by my standards), and I feel horrible that such a silly mistake will lead to a significant financial hit. Please feel free to add any other relevant information/advice beyond the questions I asked. Thanks.
- Posts: 6968
- Joined: Fri Oct 12, 2012 3:55 pm
I would wait a week or longer after the failed/returned payment before I did anything. In some cases the payee (or their electronic system) will automatically resubmit the item (check or maybe electronic payment) if the first attempt fails after a couple of days. I miscalculated the daily balance in an account with lots of activity and had a property-tax check "bounce" the first time it was submitted but when it was re-submitted by the payee two days later it went through with no issue (and no bad check charge).
The closest helping hand is at the end of your own arm.