Why Hasn’t the IRS Taken My Payment Yet?
Learn why your IRS payment hasn't been processed yet, including potential delays, bank issues, and next steps to ensure your payment is received.
Paying taxes is stressful enough without the added worry of a delayed payment. If you’ve submitted your payment to the IRS but it hasn’t been processed, several factors could be causing the delay. Understanding these reasons can help you address any issues quickly.
Payment Processing Timeline
The IRS processes payments based on the method used. Electronic payments through Direct Pay or the Electronic Federal Tax Payment System (EFTPS) generally clear within one to two business days. Credit or debit card payments, handled by third-party processors, may take longer due to intermediary processing. Mailed checks or money orders require additional time, as they must be received and manually processed, which can take several weeks, especially during peak tax season.
Timing also affects processing. Payments submitted on weekends, holidays, or after business hours are not processed until the next business day. High transaction volumes around major tax deadlines, such as April 15 for individual returns, can also slow processing. If a payment is scheduled in advance, it will not be withdrawn until the selected date, even if submitted earlier.
Bank or Payment Method Issues
Issues with your bank or payment method can cause delays. Incorrect account details, such as an incorrect routing or account number, may lead to rejection. Banks also have strict validation procedures for electronic withdrawals, which can prevent a payment from going through.
Financial institutions may block large tax payments as a fraud prevention measure. If a payment is significantly higher than usual, your bank may require prior authorization. Insufficient funds will also prevent the IRS from completing the withdrawal, potentially leading to penalties.
For credit or debit card payments, transaction limits set by the card issuer can cause issues. Many banks impose daily spending caps, which could prevent a large tax payment from processing, even if sufficient funds or credit are available.
Payment Plan Arrangement
When a taxpayer sets up an installment agreement, payments follow a different schedule than one-time tax payments. The IRS typically takes 30 days to approve a new plan, and no funds are withdrawn until the agreement is officially in place. If the first payment has not been taken, processing delays may be the cause, especially if the plan was initiated close to a tax deadline.
Direct debit agreements, where payments are automatically withdrawn, are generally more reliable. If a scheduled payment has not been taken, reviewing the agreement confirmation letter is important, as it specifies due dates and amounts.
Changes to an installment agreement, such as adjusting the payment amount or payment method, can temporarily pause withdrawals while the IRS processes the request. If an agreement defaults due to missed payments, the IRS may stop automatic debits until the account is reinstated. Notices regarding changes or issues with a payment plan are sent by mail, so monitoring IRS correspondence is necessary.
Returned or Declined Transactions
A payment can be returned or declined for several reasons, often leading to penalties and interest. One common issue is exceeding the Automated Clearing House (ACH) debit limit set by a financial institution. If a tax payment surpasses this threshold, the transaction may be rejected.
Errors in the taxpayer’s name or Taxpayer Identification Number (TIN) can also result in rejection. The IRS requires that payment details match exactly with the information on file. Discrepancies—such as a mismatched Social Security number or an outdated business entity name—can cause the transaction to fail.
Contacting the IRS
If a payment has not been processed and none of the above issues seem to apply, contacting the IRS may be necessary. Before calling, gather relevant information, such as the payment confirmation number, date, method of payment, and any correspondence received regarding the transaction.
Calling the IRS is the most direct option, though wait times can be long, especially during peak tax season. The general phone line for individual taxpayers is 1-800-829-1040, while businesses can call 1-800-829-4933. The best times to call are early in the morning or later in the week. Taxpayers can also check payment history through the IRS online account portal. If a payment is missing, submitting Form 3911, “Taxpayer Statement Regarding Refund,” may help initiate an investigation.
If a payment was made but not credited, providing proof of payment, such as a bank statement or a receipt from a third-party processor, can help resolve the issue. If a mailed payment has not been processed after several weeks, requesting a payment trace may be necessary. The IRS typically takes six weeks or more to research payment discrepancies. If penalties or interest accrue due to a processing delay, taxpayers can request an abatement by demonstrating that the delay was beyond their control.