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Dishonored payment to IRs

  • 1.  Dishonored payment to IRs

    Posted 12 days ago
    IRS   payment dishonored. Client did not have the account funded Properly.

    Can anyone tell me if the IRS will give a second try to debit the account, or must they pay the tax manually in another way...

    How shall i advise the client


    Any help appreciated.


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    Abby Alhante
    KURCIAS & ALHANTE, CPAs LLC
    Melville NY
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  • 2.  RE: Dishonored payment to IRs

    Posted 12 days ago
    Mail the check in with the extension

    Robert N. Brown, CPA, CGMA

    Robert N. Brown, C.P.A.
    390 North Broadway, Suite 120
    Jericho, NY 11753
    Tel. (516)364-4949
    Fax (516)496-3883


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  • 3.  RE: Dishonored payment to IRs

    Posted 10 days ago

    Keep in mind one thing that was not mentioned, the IRS will assess a penalty for the bounce check.  I believe it is 1 percent but could be more.

     

    Regards,

     

    Stuart G. Lang, CPA, CGMA

    Partner

    slang@grrcpas.com

    GR_Reid_logo_compressed

    responsive, reliable, resourceful financial advisement

    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

     

    G.R. Reid Associates, LLP

    7600 Jericho Turnpike, Suite 400

    Woodbury, NY 11797

     

    P:     516.802.0100 ext. 528

    F:     516.364.9600

    Direct Fax: 516-377-2764

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  • 4.  RE: Dishonored payment to IRs

    Posted 10 days ago

    Actually assess 2% and very hard to appeal.

     

    Contact me with any questions.

     

    Jeffrey

    Winer CPA P.C.

    Island Tax LLC
    Massachusetts 508-879-0408

    New Hampshire 603-689-7500

    E-Fax 508-762-1472

    Email jeff@winercpa.com

     






  • 5.  RE: Dishonored payment to IRs

    Posted 11 days ago
    Abby, my experience has always been that it's a "one and done" proposition.  If the payment is rejected, the TP will need to send payment in some other fashion (such as mailing a check).

    ------------------------------
    Stephen Mankowski
    MANKOWSKI ASSOCIATES, CPA, LLC
    smankowski@mankowskicpa.com
    215-682-7366
    ------------------------------



  • 6.  RE: Dishonored payment to IRs

    Posted 11 days ago
    I do not know if it is policy or not but I had a client in the same situation recently and they did not re-attempt to deposit.

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    Paul Sadej
    CPA
    PAUL J. SADEJ JR., CPA PC
    Bellmore NY
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  • 7.  RE: Dishonored payment to IRs

    Posted 11 days ago
    good morning

    the irs (and any government agency) when rebuffed because account has insufficient funds or the banking info is incorrect will not make a second effort to debit funds and may impose a penalty
    best advice is for the client to mail in payment with voucher immediately; the irs will bill at a later date with penalty if tax is not paid before 4/15;
    client can also go online and pay by credit card; notice will ultimately be sent by IRS for tax due and penalty for the failure to pay- but can be dismissed with proof of payment

    nothing like last minute mishegas

    all the best

    Alan Gellerman
    Gellerman Associates
    Flushing, NY 11358-1347

    ------------------------------
    Alan Gellerman
    gellerman associates
    flushing NY
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  • 8.  RE: Dishonored payment to IRs

    Posted 11 days ago

    Alan

     

    Thank you also for responding... Thankfully  it was not our error..

     

     

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )

     






  • 9.  RE: Dishonored payment to IRs

    Posted 11 days ago
    But isn't it always the accountants who are fault lol
    24 hours to go
    then on to payroll taxes
    hang in there
    all the best
    Alan
    Gellerman Associates
    3334 160 Street
    Flushing NY 11358

    ------------------------------
    Alan Gellerman
    gellerman associates
    flushing NY
    ------------------------------



  • 10.  RE: Dishonored payment to IRs

    Posted 11 days ago

    No, the IRS will not retry an EFT if the first attempt failed.

    Per the IRS: "If a payment is returned by your financial institution (e.g., due to insufficient funds, incorrect account information, closed account, etc.) the IRS will mail a Letter 4870 to the address we have on file for you, explaining why the payment could not be processed, and providing alternate payment options."

    For more information, click this IRS link:  https://www.irs.gov/payments/pay-taxes-by-electronic-funds-withdrawal.

    You will need to pay your balance due to the IRS with a check or money order or you can pay directly through the IRS Website here: https://www.irs.gov/payments.



    ------------------------------
    Jon Nixon CPA
    BETHPAGE NY
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  • 11.  RE: Dishonored payment to IRs

    Posted 11 days ago

    Thank you  Jon

     

    Abby

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )

     






  • 12.  RE: Dishonored payment to IRs

    Posted 11 days ago
    Not your error, just taking up a lot of your time for the client's error!

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    Robert Brown
    ROBERT N. BROWN, CPA
    Jericho NY
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  • 13.  RE: Dishonored payment to IRs

    Posted 10 days ago
    I had the same issue with someone's January 15th estimate. The IRS sent them a bill, including the dishonor/bounce fee.

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    Joseph Sofo
    CPA
    KURCIAS, JAFFE & COMPANY, LLP
    Westbury NY
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  • 14.  RE: Dishonored payment to IRs

    Posted 10 days ago
    I have client that had insufficient funds and the IRS attemtped to debit the account until it was collected. The IRS will keep trying to debit.
    To avoid overdraft fees, please have your client the necessary funds in the account.

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    Elizabeth Melillo CPA
    ELIZABETH MELILLO CPA
    Northport NY
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