If the IRS hasn’t debited your account for your payment plan, it’s important to take fast action to avoid additional penalties and other consequences.
How long does the IRS take to debit your account?
IRS normally processes payments very quickly. Once you have a payment date set, you should see the money come out of your account on your payment date or a few days after.
If it’s been more than five days since your payment date and the IRS hasn’t debited your account, you may have a problem.
New Payment Plans
If you’re starting a new installment agreement, the usual processing time is 30 days, but it could take longer. It could also take another month for the IRS to start taking payments.
You should receive a notice that the IRS approved your payment plan. If you never received a notice one way or the other, you can call the IRS to check your status.
Does the IRS automatically take money from your bank account?
Remember that automatic payments are an option you have to select. If you didn’t select the option, the IRS won’t withdraw money from your bank account.
In some cases, especially if you used a paper application, the IRS might make a mistake and not start your automatic payments. That’s why it’s important to call the IRS to check your payment plan information.
What happens if the IRS doesn’t debit your account?
If the IRS doesn’t debit your account, it could count as a missed payment on your installment agreement. That could cost you extra penalties and interest and could count as a default.
If you notice the IRS never took your money, you should call them right away to find out what happened. Working with them will also help to avoid a default.
While you might want to pay online to make up the missed payment, you still want to talk to the IRS. You want to find out what happened so you don’t miss your next payment.
You also don’t want them to mark your account as paying late which could lead to a default or other consequences in the future.
Leave the money in your account.
If the IRS doesn’t debit your payment, it’s important to leave the money in your bank account. They may try to withdraw it later.
Sometimes there’s no problem with your account and the IRS just got behind on processing payments.
If the problem is on the IRS’s end, they’ll usually credit your payment as of the original date. However, if your payment bounces, the payment won’t count, and you could have to pay additional fees.
If you can’t afford to make a one-time payment and have the IRS take out your automatic payment later, call the IRS before you do anything.
What happens if you make a double payment?
If you make an extra payment because the IRS didn’t debit your account and then they withdraw your automatic payment late, you’ll get credit for both payments. The extra payment will reduce your tax balance and help you finish your payment plan a little sooner.
In most cases, the IRS won’t refund an extra payment unless you paid more than your remaining balance due. However, you may be able to get a refund if you believe the IRS withdrew too much in error.