How long must I wait?

[joanmcq]

This is the first time I've done efiled extensions, and because I am REALLY lazy, I did direct debit for my own. Now I'm waiting for the IRS to snag my money, which I authorized them to do on the 16th. Of course I woke up the morning of the 16th and remembered I had forgotten to move the $ into checking the night before and rushed upstairs to do it. I don't have any indication the IRS tried to snag the money earlier than that (my bank would have taken it from savings and charged a fee), and so I am still waiting. Has anyone had experience with direct debit, and is it just taking them awhile to snag it, or could SOMETHING HAVE GONE WRONG....there is my worry mode being activated. It was a big amt due, so I really really really don't want penalties when they finally figure out I didn't pay or whatever....?

[redux]

This is the first time I've done efiled extensions, and because I am REALLY lazy, I did direct debit for my own. Now I'm waiting for the IRS to snag my money, which I authorized them to do on the 16th. Of course I woke up the morning of the 16th and remembered I had forgotten to move the $ into checking the night before and rushed upstairs to do it. I don't have any indication the IRS tried to snag the money earlier than that (my bank would have taken it from savings and charged a fee), and so I am still waiting. Has anyone had experience with direct debit, and is it just taking them awhile to snag it, or could SOMETHING HAVE GONE WRONG....there is my worry mode being activated. It was a big amt due, so I really really really don't want penalties when they finally figure out I didn't pay or whatever....?

When they use the correct bank numbers, they are VERY prompt about making the debit in the early morning hours of the date your suggested.

I would guess you'll get a paper notice that there were insufficient funds to cover the debit. I would also guess that if you do get a notice, they will give you multiple options as to how you want to proceed. If there were insufficient funds to cover the debit, then it is YOUR fault (in their minds) and penalties and interest may apply. It's their move, wait for them to make it.

Meanwhile.....

Who knows what lurks in the minds of the IRS? I recently had a client call to say he received a letter from the IRS stating that the direct debit didn't go through because we gave them the wrong bank numbers. Keeping in mind that he also owed the state and that the state had no problem with their debit. (the bank numbers flow from the Fed info to the state info - so they are the same numbers).

Of all the options they gave him, I suggested he send a check and to call the number they gave him to tell them NOT to retry the debit because he would send a check. He did all that!. Several days later he was at his bank and discovered that the IRS tried again (this time THEY input the correct numbers) and the debit went through. So now, he has made his first two estimated payments earlier than he intended.

This sort of thing doesn't seem to happen often and in my client's case, he could afford it. But I can certainly envision this sort of IRS error creating a real hardship on some people. Of course, he didn't have to send a check. One option they gave him was for him to request they try the debit again. But they compounded the problem, first, by apparently attempting a debit using the wrong numbers, then even AFTER he called to tell them he was sending a check, they tried again with the correct bank info and the debit went through.

So, the IRS would like to make all transactions electronically, and that probably is a good thing. But they should assure that it is going to be error free on their side of the equation.

[joanmcq]

Oh, I didn't want to hear that.....I forgot which day was the 16th....