Estimated Payment Didn't happen

[Beersheba]

A year ago, I arranged for quarterly estimated payments to be automatically withdrawn from the bank to pay his estimated 2021 tax liability. Each payment was $2500, total $10,000. I told him to make sure the money was in the bank, or else the IRS could create repercussions. His income level and operating funds appeared to be adequate to accommodate the payments.

Sure enough, one of these payments for $2500 was made, and then he closed his bank account and opened up another one, so he is short of paying his liability for 2021.

Outside of the normal penalties for underpayments and the like, doesn't the IRS have a separate fee for a "bounced check" that could apply in this situation??

[TAXNJ]

What did your research show? Did it include the following so not to repeat your own research?

https://www.irs.gov/taxtopics/tc206

[Beersheba]

No it did not include the TC206. I don't know how to call up "tax topics" on the IRS website by myself without the link you provided.

Almost all topics could be answered without coming to the forum, with proper access to research information, given enough time to research. There have been a couple times where I was provided with a link to 200 pages of information to read through, and I had to shoot from the hip because I didn't have time to read. Especially bad when trying to read code and regs with all their cross-references.

Thank you for your response. The link did answer my question.

[TAXNJ]

No it did not include the TC206. I don't know how to call up "tax topics" on the IRS website by myself without the link you provided.

Almost all topics could be answered without coming to the forum, with proper access to research information, given enough time to research. There have been a couple times where I was provided with a link to 200 pages of information to read through, and I had to shoot from the hip because I didn't have time to read. Especially bad when trying to read code and regs with all their cross-references.

Thank you for your response. The link did answer my question.

You are welcome. The IRS has made it very easy on the IRS website (sometime faster than writing a post).

If you use the “search” box it usually provides information one is looking for.
Also, their “Interactive Tool” may be helpful see link below:

https://www.irs.gov/newsroom/interactive-tool-on-irsgov-helps-taxpayers-get-answers-to-their-tax-questions

[Beersheba]

Very helpful NJ. Thanks.