I made a payment plan with the irs, not the state irs. Automatic monthly ACH payments through my bank checking account are made in fulfillment of this payment plan. My bank recently returned my payment due to insufficient funds. But the irs website notes the past payment as still pending.

How do I pay this payment I missed so that I can keep my payment plan and not get in trouble with the irs? The only option I get online is to make an additional payment that does not count as fulfilling any of the monthly payments.

A) The IRS website indicating the past payment as “pending” is not necessarily an error. It may take some time for the IRS to process the returned payment information from your bank.

However, to ensure your payment plan stays in good standing and avoid potential penalties, it’s crucial to address the missed payment promptly. Here’s what you can do:

1. Contact the IRS Directly: The best course of action is to contact the IRS directly. Explain the situation regarding the returned payment due to insufficient funds. Inquire about the status of your payment plan and how to reinstate the automatic payments or make a manual payment that will count towards your monthly installment.
2. Check Your Payment Plan Agreement: Review your payment plan agreement for specific instructions on handling missed payments. It might outline alternative payment methods or procedures for reinstating automatic payments.
3. Consider Making a Manual Payment: While the online option might not automatically apply the payment to your installment agreement, you can still make a manual payment. Clearly indicate on the payment form or during the phone call that the payment is intended to fulfill the missed installment.
4. Document Everything: Keep records of all communication with the IRS, including phone calls, emails, and any correspondence you receive. This documentation will be helpful if any issues arise later.

Remember, prompt action is key to avoiding penalties and maintaining your payment plan. Don’t hesitate to contact the IRS directly for personalized guidance and to resolve the issue as quickly as possible.