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Economic Impact Payment stimulus received and IRS (!) withdrawal deducted

Level 8

Schedule C business received Stimulus and also discovered deducted Payment supposedly by IRS. On the same day, Stimulus received was $2,400 and, Payment deducted approximately $4,500. This client has/had no know delinquent outstanding anything with any relevant federal state or local government entities... 

Has anyone else gotten reports of similar happening?

Friends, don't let friends process payroll.
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Accepted Solutions
Level 11

Knee-jerk reaction, this has got to be something like a 2019 balance due EFT or maybe a 1Q-ES 2020 payment scheduled a while ago and forgotten about?

View solution in original post

13 Replies 13
Level 11

Knee-jerk reaction, this has got to be something like a 2019 balance due EFT or maybe a 1Q-ES 2020 payment scheduled a while ago and forgotten about?

View solution in original post

Level 15

Agree, especially since $4,500 is such a clean number.

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Still an AllStar
Level 8

These are voucher folk, handwriting and sending paper checks. This particular Partner/Preparer is paper based. 2019 is yet to be filed. 

Friends, don't let friends process payroll.
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Level 15

If your client goes by vouchers, how is the IRS able to deduct anything from the bank account, absent a lien/levy?

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Still an AllStar
Level 11

@itonewbie wrote:

If your client goes by vouchers, how is the IRS able to deduct anything from the bank account, absent a lien/levy?


Also, how did the IRS get bank info for direct deposit?

Level 15

I suppose the taxpayer could have submitted the direct debit info somehow.  But even then, the IRS doesn't have any authority to withdraw money from that account, using that info, and without any lien/levy.

It just doesn't add up.

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Still an AllStar
Level 8

Prior year overpayments refunded into business account supplied the account information is the theory 

New bread crumbs, all occurring the same date:

  • $2,400.00 deposited
  • $4,508.52 withdrawn
  • $126.00 withdrawn
Friends, don't let friends process payroll.
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Level 15

Get a transcript or statement for the back account and check it's really the IRS.  Just don't see how the IRS can pull funds out of the account.

Forget about the advance refund - that has no relevance to what happened to your client's account, IMHO.

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Still an AllStar
Level 8

Appreciate all the participation. I will let you know as this continues to unfold. 

Friends, don't let friends process payroll.
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Level 15

Would love to hear back.  I'm curious as to what actually happened.

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Still an AllStar
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Level 8

⚠️  Occam's razor strikes again. It was the previously scheduled 941 deposit.  ⚠️

Sorry that's far less satisfying than anticipated. 🤣 Cheers!  🍻 

Friends, don't let friends process payroll.
Level 11

Ah, thanks.  And the $126 was FUTA?

Edit:  I'll answer my own question.  Yes.  3 employees.  If I were in a better state of mind I would have caught that earlier!  Crazy year.

Level 8

@rbynaker for the win, folks!

Yep. FUTA. Client pays as they go. 

Agreed - if I can remember back to when I had a "better state of mind!?" 

Friends, don't let friends process payroll.