IRS still withdrew 10K from my account despite setting up payment plan
So I'm beyond frustrated right now. I owed approximately $12,500 in taxes this year (my side business did better than expected but I didn't plan properly for taxes). Since I couldn't pay the full amount at once, I went online and set up the 180-day payment plan that the IRS offers. Yesterday (April 18th), I nearly had a heart attack when I checked my bank account and saw the IRS had taken the ENTIRE amount! My account went into overdraft by about $8,300. I immediately transferred every penny from our emergency savings to cover it and avoid the ridiculous overdraft fees. This morning, something even weirder happened. The IRS reversed the charge completely, putting the money back in my account. I breathed a sigh of relief thinking they realized their mistake. But THEN, a few hours later, they charged the full amount AGAIN! None of these charges should be happening at all! I have confirmation of my payment plan, which clearly states I have until October to pay the balance in full. I used Jackson Hewitt for my taxes this year, and their preparer is actually the one who suggested the payment plan and walked me through setting it up. I've tried calling the IRS but keep getting stuck in automated phone hell. Has anyone experienced something like this? What do I do now?
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Liam Cortez
This is unfortunately something I've seen before with payment plans. The IRS systems don't always communicate properly with each other, especially when there's a timing issue between when you file, when the payment plan is processed, and when automatic withdrawals are scheduled. What likely happened is that when you filed your return (or when Jackson Hewitt filed for you), bank information was included for direct withdrawal. Then separately, you set up a payment plan. The direct withdrawal request was already in process when the payment plan was approved. First thing you should do is call the IRS at 800-829-1040. I know the wait times are brutal, but this needs to be addressed immediately. Explain exactly what happened with dates and times. They can see all transactions in their system. Second, contact Jackson Hewitt and explain what happened. Their tax preparer should not have included bank information for direct withdrawal if they knew you were setting up a payment plan. That's a major error on their part. Keep all documentation of the payment plan confirmation, bank statements showing the withdrawals, and any correspondence with the IRS.
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Savannah Vin
•Does the IRS ever refund money in situations like this? Or are they just like "too bad, you paid your debt early"?
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Liam Cortez
•Yes, the IRS will refund the money in situations like this, especially when they've processed a duplicate payment. However, it's not automatic - you need to specifically request it. When you speak with them, ask for a "refund of duplicate payment" or "refund of erroneous payment" and explain the situation. The process typically takes 4-6 weeks to receive the refund once they've processed your request. Make sure to get a confirmation number or reference number for your refund request when you speak with them.
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Mason Stone
I went through something similar last year and discovered taxr.ai which was a total lifesaver. I was completely overwhelmed trying to figure out what went wrong with my payment plan when the IRS suddenly withdrew everything. I uploaded my payment plan confirmation and bank statements to https://taxr.ai and it analyzed everything, showing me exactly what went wrong and giving me a personalized action plan. It even created a letter template I could send to the IRS explaining the situation. The best part was that it showed me how to request a refund for the improper withdrawal AND get the overdraft fees reimbursed. Definitely worth checking out if you're stuck in IRS limbo like I was!
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Makayla Shoemaker
•How does this actually work? Like do real people look at your documents or is it some AI thing? I'm always nervous about uploading financial docs.
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Christian Bierman
•Sounds sketchy tbh. Why would I pay for some service when I can just call the IRS directly? They're the ones who messed up.
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Mason Stone
•It uses AI to analyze tax forms and documents, but with bank-level security encryption. You only need to upload the specific documents related to your issue - in this case, the payment plan confirmation and bank statements showing the withdrawals. No need to share your entire return or anything. I was definitely hesitant at first too! But it helped me understand exactly what happened in language I could understand, instead of the confusing IRS-speak. While you can absolutely call the IRS directly, having a clear explanation of what went wrong and how to fix it made that conversation much more productive.
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Christian Bierman
Just wanted to update that I tried taxr.ai like someone recommended here and I'm honestly surprised how helpful it was. I was super skeptical (as you can see from my previous comment), but after waiting on hold with the IRS for 2+ hours and getting nowhere, I decided to give it a shot. The service showed me that when I filed through Jackson Hewitt, they had included the "direct debit" option on Form 1040 line 37, even though I had separately set up a payment plan. The system flagged this exact conflict for me and generated a letter requesting refund of the duplicate payment that included all the right references and codes. I just got confirmation that my refund is being processed! And they sent me instructions for getting the overdraft fees reimbursed too. Definitely worth it for the headache it saved me.
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Emma Olsen
After reading your post, I immediately flashed back to my similar nightmare last year. I tried calling the IRS for WEEKS with no luck - just endless hold music and disconnections. I finally discovered Claimyr (https://claimyr.com) which basically holds your place in line with the IRS and calls you when an agent is about to pick up. They show how it works in this video: https://youtu.be/_kiP6q8DX5c I was connected to an actual IRS agent within 45 minutes (after trying for days on my own). The agent explained that my tax preparer had incorrectly coded my payment method and helped process a refund for the duplicate payment. They even put notes in my account to prevent it from happening again. Seriously saved me so much time and frustration - especially with an urgent issue like yours where you need to speak to someone ASAP.
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Lucas Lindsey
•How does that even work? The IRS phone system is literally designed to make you suffer. I'm suspicious of anything claiming to beat that system.
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Sophie Duck
•Yeah right. As if some third-party service has magic powers to skip the IRS phone queue. This sounds like a scam to get desperate people's money.
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Emma Olsen
•It works by using their system to navigate the IRS phone tree and wait on hold for you. When an agent is about to pick up, they connect the call to your phone. It's not skipping the line - you're still in the same queue as everyone else, but you don't have to sit there listening to the hold music for hours. They're actually a legitimate service that's been featured in major news outlets. It's not magic - just a smart solution to a frustrating problem. They can't do anything about the actual wait time, but they save you from having to actively wait on hold. I was skeptical too, but when you're desperate to talk to the IRS about thousands of dollars, it's worth trying.
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Sophie Duck
I need to eat my words here. After my skeptical comment yesterday, I was still struggling with a similar IRS issue and decided to try Claimyr out of desperation. I honestly can't believe it worked. After spending 3+ hours on hold myself the day before (only to get disconnected), Claimyr got me connected to an IRS agent in about an hour. I didn't have to stay on the phone - they called me when an agent was about to pick up. The agent was able to see both my payment plan and the erroneous withdrawal. They're processing a refund for me now and added notes to my account about what happened. They also confirmed it was my tax preparer's error for including bank info on the return itself when setting up a payment plan. For anyone dealing with this nightmare, save yourself the hours of frustrating hold music. Sometimes you have to admit when you're wrong, and I was definitely wrong about this service.
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Austin Leonard
Contact your bank immediately! You might be able to dispute one of the charges as unauthorized since you had a payment plan in place. Banks typically give you a certain number of days to dispute charges, so time is of the essence. Also, make sure you get everything in writing from the IRS regarding your payment plan. If your tax preparer mishandled this, you may have recourse with them as well, especially if they're a larger company like Jackson Hewitt that carries insurance for these types of errors. This is exactly why I stopped using tax prep services and just use FreeTaxUSA now. Too many horror stories about preparers making costly mistakes.
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Anita George
•Would disputing the charge with the bank cause problems with the IRS though? I've always heard you shouldn't mess with the IRS like that or they'll come after you even harder.
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Austin Leonard
•That's a valid concern. You should talk to the IRS first before disputing anything with your bank. If the IRS acknowledges the error and agrees to refund the money, then you wouldn't need to dispute the charge. If you dispute a charge that was actually valid (even if it was a mistake on when it was processed), it could potentially create more issues. The safest approach is to call the IRS, explain the situation, get a case number or reference number, and then follow their process for getting a refund of the duplicate payment. Banking disputes should really be a last resort in tax situations.
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Abigail Spencer
Did you check if HR Block guaranteed their work? Many tax prep companies offer some kind of guarantee or insurance, especially for cases where they made a clear error like this. If their tax professional advised you on the payment plan but then entered your banking info for direct debit anyway, that's definitely on them. Ask for a supervisor at HR Block and mention terms like "professional liability" and "error and omissions coverage." This kind of mistake should be covered, and they might even reimburse you for any overdraft fees you incurred.
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Kiara Fisherman
•Thank you for this suggestion! I called HR Block's customer service and got nowhere with the first rep, but when I asked for a supervisor and mentioned "professional liability" like you suggested, they immediately changed their tone. They're opening a formal case and said they'll investigate what happened. The supervisor confirmed that their tax preparer should not have entered my banking information for direct withdrawal when setting up a payment plan - apparently it's in their training materials. They've promised to follow up within 48 hours about potential reimbursement for the overdraft fees, which totaled $175. I'm also working with the IRS to get the duplicate payment refunded. It's still a mess, but at least I feel like I'm making progress now.
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Amara Nnamani
I'm so sorry this happened to you! This is actually more common than it should be, and it's exactly why I always recommend double-checking with your tax preparer about payment methods when setting up installment plans. The good news is that the IRS does have procedures for handling duplicate payments and erroneous withdrawals. When you call them (and I know the wait times are brutal), make sure to have these key pieces of information ready: 1. Your payment plan confirmation number 2. The exact dates and amounts of all withdrawals 3. Your bank statements showing the transactions 4. Any correspondence from Jackson Hewitt about the payment plan Ask specifically for a "duplicate payment refund" and get a case number for your request. The IRS typically processes these refunds within 4-6 weeks once they verify the error. Also, definitely hold Jackson Hewitt accountable for this mistake. If their preparer walked you through setting up the payment plan but still included your banking info for direct withdrawal, that's a clear error on their part. They should help resolve this and potentially cover any overdraft fees you incurred. Keep detailed records of everything - dates, times, who you spoke with, case numbers, etc. This documentation will be crucial if you need to escalate the issue further. Hang in there - this will get resolved, it's just frustrating to deal with in the meantime!
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