FAQs • My taxes were supposed to be paid at closing, and the (2024)

FAQs

What happens when your tax return goes to a closed account? ›

If the info you provided is for a closed or invalid account, the government will mail you a refund check. If you entered an account number that belongs to you, but you intended to enter a different account, check Where's My Refund? to see if the return has been posted to the IRS.

Debit/credit card payments will appear 1-2 days after your payment date. Check or money order payments may take up to three weeks to appear.

Executors and beneficiaries generally do not have personal liability for estate taxes although the IRS can come after the assets held by the executor and beneficiaries if the taxes are left paid. Under IRS regulations, the executor or administrator of the estate has the duty to pay the taxes.

The IRS has broad legal authority to examine your bank accounts and financial records if needed for tax purposes. Some of the main laws that grant this power include: Internal Revenue Code Section 7602 – Gives the IRS right to examine any books, records or data related to determining tax liability.

Of course, the bank must return any remaining funds in your account but may hold on to them to cover any negative balance or fees. In some cases, the bank may hold the funds if your account is flagged for suspicious activities, which is increasingly common.

However, the time for money to bounce back from the wrong account varies, typically taking a few days to weeks, but it can be longer if there are complexities or disputes.

If it's been at least two weeks since you sent the payment to the IRS and your financial institution verifies that the check hasn't cleared your account, call the IRS at 800-829-1040 to ask if the payment has been credited to your tax account.

Find out which payments you received

Your Online Account: Securely access your individual IRS account online to view the total of your first, second and third Economic Impact Payment amounts under the “Economic Impact Payment Information” section on the Tax Records page.

How do I know if my IRS payment went through? ›

You can also check with your bank after two business days to make sure the payment went through. If your bank confirms your payment was processed, but it does not appear in your IRS Online Account, contact us by phone.

Taxpayers who file electronically and choose direct deposit typically get their refund in less than 21 days. Taxpayers who don't have a bank account can find out how to open a bank account at a FDIC-insured bank or the National Credit Union Locator Tool.

What's Taking So Long to Receive Refunds? If you don't receive your refund in 21 days, your tax return might need further review. This may happen if your return is incomplete or incorrect. The IRS may send you instructions through the mail if it needs additional information to process your return.

If you're planning to file your tax return soon and want your refund money as soon as possible, make sure you file electronically and set up direct deposit. It's a simple way to access your IRS money a few days or weeks sooner than if you depend on the mail to submit your taxes and receive your refund.

The IRS audits about 50% of all estates valued at $5 million or more, 25% of estates from $1 million to $5 million, but less than 10% of estates valued under $1 million. The overall audit rate is 15%.

Returns filed with gross estates less than $1.0 million were audited at a rate of 11.1 percent. However, almost 50.0 percent of returns filed with gross estates over $5.0 million were audited, even though the audited returns in that category represented only 9.7 percent of the entire audited population.

After this, it will take six to nine months for the IRS to issue a closing letter or to announce that an audit will take place. If you are the executor of an estate, you should have a thorough understanding of issues relating to estate tax.

An estate tax return is required if the gross value of the estate is over a certain threshold. For individuals who passed in 2023, the threshold was $12.92 million (which increases to $13.61 million in 2024). Almost anything belonging to the deceased with a tangible cash value is included in the value of the estate.