Any of you Golden Staters have clients with accounts at Silicon Valley Bank? It’s an object lesson in why I prepare tax returns, I don’t help clients pay taxes. All those people who had set up automatic withdrawals for April 18, or maybe October if the disaster extension applies, will probably have to go back and change their instructions. My understanding is that the bank is still open, but under a new name and routing number.
Back in 2008, I had a client whose Social Security check was deposited directly to her failed bank. They sent paper checks instead. Autopay was not too common back in those days, so I don’t think any bill payments were missed. But remember, there is only one letter difference between autopay and autopsy.
Speaking of which, I am helping a client administer the estate of a relative who died September 14. A helpful CPA had set up a $2,000 estimated-tax payment from his bank account on September 15. There wasn’t time to stop it. The estate is now waiting for the refund. The taxpayer was in hospice care most of the year, and medical expenses reduced the tax owed to zero.
