they sent a check but also did direct debit

[mrichman333]

So I just got a voice mail, a client just sent out a check for their tax payment, but we put in a direct debit, and the money has been taken out of the account.

What is the best way to handle this?

[MsTabbyKats]

Amend the return

[jasdlm]

If there is any way they can stop payment on the check, I would have them do it. This happened to one of my clients one year. Although I called the Feds immediately, and they acknowledged they could see both payments, it took 7 weeks to get the overpayment returned.

[MsTabbyKats]

If there is any way they can stop payment on the check, I would have them do it. This happened to one of my clients one year. Although I called the Feds immediately, and they acknowledged they could see both payments, it took 7 weeks to get the overpayment returned.

The IRS charges a penalty if a check is "returned", and then if you want the penalty abated, it's more paperwork.

[jasdlm]

I didn't think they would charge the 'return' penalty given that the tax has already been paid. Agree completely if the tax was still due and owing. You might be right . . . I just hate to see the client out the money twice for 7 or 8 weeks.

[MsTabbyKats]

I didn't think they would charge the 'return' penalty given that the tax has already been paid. Agree completely if the tax was still due and owing. You might be right . . . I just hate to see the client out the money twice for 7 or 8 weeks.

They will charge a penalty if the check doesn't clear...they will give you back the penalty if you do the paperwork.

I think it just might be easier to amend.

Or..you can do what I do. Call the IRS Tax Preparer hotline and ask what to do.

[joanmcq]

The taxpayer screwed up, so they'll just have to wait for the check to clear and the another check mailed out. Calling the PPL might get it expedited.

[mrichman333]

Last time I called I was on hold for 1/2 hour before I got disconected

[joanmcq]

If you're on the west coast, call after 5pm. I get through in less than 2 minutes then.

[Jack from Ohio]

The taxpayer screwed up, so they'll just have to wait for the check to clear and the another check mailed out. Calling the PPL might get it expedited.

Agree with Joan. It is not your fault the taxpayer did not follow through properly, jumped the gun and mailed the check.

Wait for the IRS to refund the overpayment. Anything else you do, will muddy the waters.