PSA: estimated tax payment and e-file timing issue

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RubyTuesday
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Joined: Fri Oct 19, 2012 11:24 am

PSA: estimated tax payment and e-file timing issue

Post by RubyTuesday »

For 2020 taxes, I used HR Block to figure my taxes and then scheduled an online electronic payment to IRS so that I would be due $5040 in refund, with $5k of I bonds and $40 direct deposit. Unfortunately, I shot myself in the foot with the timing of my payment and e-file of return.

Here is the timing:
Sometime in March 2021, scheduled a payment to be made on 4/1 (essentially form 4868 extension) made at IRS website.
4/1/2021 payment made… I confirmed debit had happened at bank, so I assumed I was good to file
4/1/2021 e-filed return showing $5040 refund with $5k to I bonds and $40 direct deposit
Return accepted…waiting…
4/21/2021 refund of $1190 received at bank

That refund was the wrong amount, but would have been the correct amount without accounting for my 4/1 payment. So now they owe me additional $3850.

It’s been “your return still being processed” ever since.

I checked the transcript and it shows the incorrect refund, and also shows correct values for everything else, including my payments and bond purchase request.

I’ve been waiting ever since.

Finally called today, using the phone number to request appointment with taxpayer advocate.

After 50 minutes on hold received offer for callback. 30 minutes later get the call back. Took about 20 minutes to get authenticated, explain situation and have him resolve it and unfreeze the credit owed. They will not be able to honor the bond purchase request but will send check for refund and interest.

The agent was pretty sure my timing is what screwed me. He said they sometimes take a week or more to credit payments even when made electronically.

So
Tl;dr make sure to allow ample time for any payments to fully process if you’re over paying for bond purchase. Any changes to your refund amount will likely cancel the bond purchase request.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
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