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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 12050
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have an installment agreement business payroll taxes.

Customer Question

I have an installment agreement for late business payroll taxes. The payments are directly taken from my account. This payment was returned nsf. Will they re run it through the account, or do I need to send them a check? And will there be any fees?
Submitted: 2 years ago.
Category: Tax
Expert:  Lane replied 2 years ago.
Hi,.They will not resubmit (whether we are taling about EFTPS for an installment agreement or other forms of checking account automatied payments) ... AND this applies to regular tax payments, installment plans for payroll taxes, installment plans for personal taxes, AND installment for corporate income taxes (1120)..I would get a check off to them as quickly as possible so the system doesn't automatically throw you into default on the payment plan..As a matter of fact, sending vis FedEx or other overnight delivery is a best practice here..See this from IRS:My check (payment) did not clear. What now?At times taxpayers will call the IRS because they received a Letter 608C, Dishonored Check Penalty Explained, stating that their payment was dishonored and returned from a financial institution (bank) unpaid. The IRS does not submit checks or other commercial payment instruments a second time for payment. The resubmission of a payment is in the hands of the clearinghouse. When a check or other commercial payment instrument is not paid, the clearinghouse frequently resubmits it to the bank.We cannot ensure that the check or other commercial payment instrument will be submitted a second time for payment. It is up to you to decide whether to wait and see if the clearinghouse resubmits it to the bank, or whether you should make an additional payment.If your check or other commercial payment instrument is resubmitted and there are sufficient funds in your bank account to cover it, the check will be paid and not returned to the IRS, and therefore, you will not be charged the unpaid check penalty. If the payment is honored after the due date, however, you may be charged interest and a penalty for the late payment. We will notify you if a balance becomes due on your account..Hope this helps..Lane.Please let me know if I can help further, or if you have questions....I this has helped I'd 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...