Forgot to enter extension payment in 1040

[zha0q1]

I filed an extension for 2023 and paid for the estimated due on the official website back in April 2024. However, when I filed my federal tax this month, I forgot to include/report that payment on my 1040.

Apparently, IRS tried to withdraw the due again from my account, but it failed because my account had insufficient fund and I got notified of this by a mail. 

What should I do now to make IRS link my earlier payment to my 1040 and not ask me to pay again?

[Mike9241]

if you used the IRS website did you print out or save the confirmation. if not obtain a copy of the bank statement showing the payment clearing.   

your first option is to call the IRS. have the documents handy because there are tracing numbers or a confirmation code that the agent will ask for 

Call 800-829-1040

• Choose your language,
• Then choose option 2
• Then 1
• Then 3
• Then 2
• When it asks you to enter your SSN or EIN do nothing – wait - - After it asks twice, you will get another menu
• Then 2
• Then 3

It should then transfer you to an agent. Note when its phone line are busy you may be on hold for a long while or disconnected

other option

send the notice, documentation and a letter explaining the balance due was been paid timely but that you accidently omitted the extension payment from the return. ask that the enclosed documentation showing the payment be reviewed and credit given. sign the letter   

in either case ask that any penalties or fees for the bounced payment be waived because the IRS should not have charged your a/c the second time. 

[zha0q1]

Thanks for the detailed answer!

Do you think IRS could automatically figure things out? My payment was made on IRS direct pay and specifically for 2023 tax balance. I actually don't think there will be a penalty, because when IRS reviews my balance for 2023, they will see I don't owe any money. In fact, I overpaid by $100, and I kind of hoped IRS could mail me a refund check, which happened for other people who accidentally overpaid on direct pay, according to my research..

About the notice you mentioned --  is it just a letter or a formal tax amendment? 

[Mike9241]

what did the IRS letter say? Did it indicate they caught the extension payment? 

or you can go to the iRS website and review your tax account transcript to see if they picked up the extension payment.

 https://www.irs.gov/individuals/get-transcript 

[zha0q1]

It says "the withdrawal of (tax due amount) failed, please pay with another method (check, direct pay, or eftps) ASAP." I suspect this withdrawal was automatically scheduled by my e-file. When I go to the IRS direct pay website, it does say that my April payment was processed and recognized for 2023 balance.

I think 1) I should not need to amend at this time, because there's nothing wrong with my tax duty calculation 2) I just need to communicate through the payment situation with IRS. I will try to call them today, but I think because the website recognizes my payment, they may already know?

[Mike9241 · Accepted solution]

You should be clear. why it wasn't caught to start with may be because the iRS computers are antiquated or you filed your return very soon after the payment.  if you have the time, it doesn't hurt to call just to make sure. The way I look at it it's better to be safe than sorry. 

[zha0q1]

I called (it was very hard to connect!) and yeah it appeared to be all cleared. Both me and the IRS representative suspected that the second payment was triggered automatically by turbo-tax efile.

Anyways I don't owe anything. And the over-payment will be returned by check.

They did, however, penalized me ~80 dollars for the failure of withdrawal of the second payment, which the IRS representative could not fix on the call, and directed me to use form 843 to request for abatement

[Mike9241]

glad to hear all is clear.