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A couple years ago I wrote a check to the IRS for a tax payment with more than enough funds in my account to cover it. The bank rejected the payment. I went to the bank and they told me that the IRS was the one who rejected payment, not them. Called the IRS a number of times as well as wrote them with all the relevant bank statements. They said the bank denied payment.
I finally got an appointment with an agent here in Santa Fe who looked at my letters and documentation and agreed there was more than enough to cover the withdrawal and she would annotate and send off for resolution. No response. IRS assessed penalties and interest. Three visits to the bank. Many calls to IRS, including their protest/ombudsman office, to no avail. No more in-town agents shortly thereafter. Closed out the bank account.
How could this happen? I know it’s too late for any resolution, but interested to know if something else could have been done differently?
I have always paid the IRS through their EFTPS site and I have never had a problem.
Contact your congressman and senators.
This is actually a good idea. They helped me last year with a Treasury Direct transaction that was going nowhere after 6 months. I contacted my congressman’s office and the matter was resolved in 2-3 weeks.
LOL
Laugh all you want. They have people dedicated to constituency services. Especially if you’re in a smaller state (maybe NM based on the above), you’re more likely to get help with federal agencies.
No disrespect intended, but given Congress’ current track record… I hope the services you highlight are indeed helping people, below the level of dysfunction that is constantly paraded before us.
Ben is correct. Call the office of your congressman. They have a staff person that will contact the IRS and solve this for you. I had an issue as the executor for my brother’s estate. After completing and filing his last after death income taxes, he was entitled to a refund. Over a year went by and I never received the refund, even after calling the IRS numerous times. I contacted my congressman’s office and gave my information to a staff person who works directly with the IRS. She called me a week later and said I should receive the refund in two weeks. And I did.
Very glad to hear about your experience; thanks for adding such an encouraging example!
I would suggest paying online in the future. Ive done so for over 10 years with no issues.
Did any of these entities provide you with a clear copy of the check that was denied?
Mary, I’m sorry that I have no remedy to offer. I know from my experience as a tax preparer, that things get buried at the IRS, and nothing we do seems to move the needle forward. Linda’s statement is correct, and with recent doge cuts, things will only get worse.
I had a similar experience trying to shake loose a client’s $8k refund. Numerous calls to the IRS, including with the phone reps agreeing with our situation. After over two years, they finally issued the refund, including nearly $1k in interest for the delay; our tax dollars at work.
“$1k in interest for the delay”
I received interest from the IRS because they dallied my refund for two years. Last week I received noticed from the IRS that I need to report that interest on my tax return. IRS giveth, IRS taketh.
Same thing happened to me. I guess it’s fair, and it’s certainly legal, but annoying nonetheless.
Yes, it’s interest received. They pay the same rate as they charge for late payments. Of course, it would be nice if they paid the same penalties!
With a huge decrease in the number of IRS employees, I think we can expect more strange and frustrating occurrences of this nature. An organization that I volunteer for sent a paper check to the IRS, return receipt requested and with tracking. The check reached its destination within a couple days, but it was a month until the check was cashed.
The only thing I can think of is to adjust your withholding so you get a small refund? Chris
I always mail in printed tax returns with hand-written checks. The IRS has always deposited my checks within 48 hours of receipt, while the returns aren’t recognized online for 6-12 months. What you went through is terrible and I can’t think of anything you could have done other than spend a ridiculous amount of money on a tax attorney.
It could happen because you wrote a check. I have had an online account withe the IRS for over 10 years now and make my payments using that account without any issues.