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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 12031
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I applied online installment agreement via direct debit

Customer Question

I applied for an online installment agreement via direct debit with the IRS early last month (June 2015). Will I get a notice in the mail confirming when the first payment will be deducted? I noticed the first payment did not come out on the 15th of July (I set up the payments for the 15th of each month). How long does it take for the first payment to come out of my bank account.
Submitted: 2 years ago.
Category: Tax
Expert:  Lane replied 2 years ago.
Hi,.On the first issue, we're seeing a lot of this (just slow processing generally); checks not being cashed, refunds taking longer, direct debits AND deposits of refunds, ALL taking longer.I just had a question a couple of weeks ago from an individual who wondered if he should stop payment on his check, becasue it had been two months..With all of the furloughs and cutbacks since 2008, IRS now has appx 1 person doing what three did before..As long as you have your confirmation that the plan was accepted I would give it some time..BUT, don't expect a head's-up by mail either..If you'll look at the form (or doing this online you agreed to somethig like this by checking a box:"I authorize the U.S. Treasury and its designated Financial Agent to initiate a monthly ACH debit (electronic withdrawal) entry to the financial institution account indicated for payments of my federal taxes owed, and the financial institution to debit the entry to this account. This authorization is to remain in full force and effect until I notify the Internal Revenue Service to terminate the authorization. To revoke payment, I must contact the Internal Revenue Service at the applicable toll free number listed above no later than 14 business days prior to the payment (settlement) date. I also authorize the financial institutions involved in the processing of the electronic payments of taxes to receive confidential information necessary to answer inquiries and resolve issues related to the payments".So I think the best practice here is to treat the payment as being taken out (or assuming that it will be at any moment)..By the way, I asked the customer to let me know what happened, and the check WAS eventually cashed..Please let me know if you have questions ....Lane.
Customer: replied 2 years ago.
So for direct debit installment agreements, you should not expect any monthly notices to be mailed to you?
Expert:  Lane replied 2 years ago.
That's correct ... Not from IRS..Your bank may have several ways to notify you once they've hit
Expert:  Lane replied 2 years ago.
If you are worried that something has been lost, or not set up (you'll have to be prepared to wait on hold for 30 minutes), but calling them is one way to check the status..More efficent for you MIGHT be (depending on where you are) going in to a local field office: (There's a map at the bottom of this page where you can look up your closest office:
Expert:  Lane replied 2 years ago.
.Again the statement in that agreement, "This authorization is to remain in full force and effect until I notify the Internal Revenue Service to terminate the authorization." is telling that this is a monthly automated transaction..They do not send something out before each debit.Other questions?.
Expert:  Lane replied 2 years ago.
Hi,.Did my answer help?.If so, I'd really appreciate a positive rating … (by clicking – or touching on - the stars or smileys on your screen) - That's the ONLY way I can be credited for the work here..BUT, if you have remainingg questions, let me know ...Thanks!.Lane.