Electronic funds withdrawal not accepted
My client's electronic funds withdrawal of a balance due was rejected. All the bank info/name appears to be correct. Is there any way to determine why? Has anyone else had this for 2011 returns?
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TCCPA
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02/08/12 7:42am PST
Viewed by asker 02/17/12 5:17am PST
Viewed by asker 02/17/12 5:17am PST
32 Replies
Dusty2004
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02/08/12 7:45am PST
I have not had this issue yet. Fed or State? Did they reject the return or just the electronic payment?
I would contact Tech Support at this point.
Dusty
Please call 800-434-6818 if this does not answer your question or if you have a complaint.
02/08/12 9:30am PST
Fed was the only return with a balance due. The returns were accepted, but the 9325 had the box checked that the EF payment was NOT accepted. No explanations....... I saw the post for a similar rejection for 2010, but those issues did not apply to this situation. I have a voided check and the name matches the return exactly. In prior years my client has received refunds via direct deposit to this same account. Biggest fear is to tell my client to pay w/voucher and then they take the funds electronically anyway.
02/08/12 8:18am PST
I had this happen several times last year.
Once the name on the tax return was their full legal name, but the name on the bank account had their first name as a nickname (i.e. Patricia on the return, Trish on the bank account).
Another time it was a minor childs tax return trying to have the electronic withdrawal from parents account and the electronic funds withdrawal was rejected.
~~Lisa
02/08/12 8:21am PST
Thanks Lisa - so far I have not had that issue. How did you resolve it? Did they mail a check?
Dusty
02/08/12 10:43am PST
I have the same problem with my own personal return. I am wondering if my issue has to do with the Wachovia/Wells Fargo merger. According to Wells Fargo, the RTN and a/c number for my account are the same as last year. However, the IRS comuter rejected the withdrawal of the funds due. I wonder if putting the old RTN (which is the old Wachovia number) and Wells Fargo as the bank name caused the problem?
02/08/12 11:24am PST
Don't think that's the issue in my case. My client banks with an Arizona Credit Union and I don't believe there was a change in the routing number.
Mt Juliet CPA
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02/08/12 12:08pm PST
I have heard that a few people are having problems using a April 16th Withdrawal Date even though there is no bank holiday in their state
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02/08/12 12:51pm PST
I would call the credit union. Sometimes they have funky digits at the end of the account numbers to indicate checking or savings. Mine did that a couple years ago - (9) for checking, (6) for savings - then the next year they did away with it. Caused a lot of confusion. I also saw this in the efile publication:
Providers should caution taxpayers to ensure, before they e-file, that their financial institution allows EFW requests from the designated account. Some credit unions do not permit direct debits from share accounts.
02/09/12 7:01am PST
I had it happen the other day, return fine but the electronic withdrawal not accepted. Just gave them the voucher to mail. They said what date they wanted for the withdrawal, it was Presidents day, so just assumed that was the reason since the banks were closed? It was also only for $4 but would not think that would be an issue.
02/09/12 7:07am PST
Several other people are having this problem. It in several inhstances is checking Box 5 on Form 9325 and in talking with Tech Support this may be a glitch in the program. We have four of these here In Tennessee thyat this has happened and we called the IRS and the Funds Withdrawal is scheduled even though the Form 9325 has box 5 checked,. In a conversion with Tech Support Yesterday they feel that there is sometype of link error that makes the box check 5 instead of 4 on Form 9325.
We are going to see what happens on two of them in the morning and see if the funds were withdrawn , if they were it will verify sometype of program error or link error
02/09/12 7:15am PST
Guess I had better call them and hopefully they have not sent the check already. They just wanted to get the $4 paid.
02/09/12 7:29am PST
Did you call eservices help desk, just got off the phone with the client and they already mailed the $4. So want to get the eft stopped now if it is actually scheduled.
02/09/12 7:33am PST
We are waiting to see if the Electronic Funds Withdrawal actually takes place on the 10th of Feb for 2 of them then we will have more information as to whether it is a program glitch. Also possibly we will see what Dusty shows on his
02/09/12 7:53am PST
The e-services Help Desk said the withdrawals were scheduled whe we called yesterday and they did not know what was causing the problem on Form 9325
02/09/12 7:54am PST
My client is not scheduled until the 20th so have some time to see what happens.
02/09/12 7:55am PST
Thanks for your assistance. Let me know if you find out that your clients' withdrawls go through. I'll holding off on giving my client a voucher until I have some clarity on the issue. Appreciate your help.
02/09/12 12:18pm PST
Again, thanks for sharing your experiences. When you called the IRS, did they speak to you as the third party designee, or did you need a POA?
