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Level 3
posted Mar 3, 2022 8:36:22 AM

Is an ACH payment considered a “commercial payment” by IRS

           Topic No. 206 Dishonored Payments | Internal Revenue Service (irs.gov) 

On my IRS e-file, I entered an incorrect ACH routing number, and the return was accepted. I made the same mistake with my state taxes, but that was resolved.

The IRS payment still showed up on irs.gov/account, so I called the IRS Payment Services at [phone number removed], but they weren’t able to help.   I logged into irs.gov/account and submitted a new payment for TY2021, and saw the withdrawal the next day.

Topic 206 says there can be a 2% penalty for a dishonored check over $1,250.  Of course, my bank did not dishonor the payment because they never received it due to the wrong routing number.  

 

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2 Replies
Level 15
Mar 3, 2022 10:24:31 AM

with a bad routing number, the transfer will go back to the IRS to issue a paper check. I've never heard or seen them charge a fee for this. it could take many weeks before you get the check in the mail. 

 

a dishonored check is when you send the IRS payment and the check bounces for whatever reason.

 

 

Level 3
Mar 3, 2022 12:06:30 PM

Re: "... back to the IRS to issue a paper check ..."

 

I am the one paying the IRS for a balance due.   The first payment to them failed, the second succeeded.  

 

@Mike9241