Transaction of IRS in my bank account, what is this?

[twuoo]

Today I logged into my bank account and saw this: PAY BY PHONE CHECK IRS -USATAXPYMT

The amount was $0.00

I don't know why they are "phone checking" me???

Any thoughts?

Maybe this is for direct deposit of tax refund? I never saw this before.

[JRScott]

Have no idea never seen it myself....

[BK2008]

Did you sign up for EFTPS, the processing service by the IRS to pay your taxes via electronic submission from your checking account??

This could be the way they are testing your account to make sure it works correctly.

[Flamingo]

do you have a tax refund coming in on your federal tax return and listed your checking account number and other bank coding on the back of your tax return when you signed to have them direct deposit it? If so, that is probablly what that is; if not, check with your bank as to what that could be.

[twuoo]

Thanks guys! I think bk2008 got it, I had signed up on the efpts to pay taxes...oh yay...not!

[BK2008]

Personally, I love EFTPS..no lost checks, always on time, no miscoding of my $38.40 check to $3840.00 and overdrafting my account (it happened..what a mess..Thanks, IRS).

And the way I figure it, if they were goinna seize my account, they could easily get my account number anyway, whether I provide it or not. So I will convenience myself instead this way.

[kp8868]

http://www.fms.treas.gov/TFM/vol4/v4p1c220.html

2230.20-Financial Institution and Depositary Enrollment Responsibilities
At the request of a taxpayer that selected ACH debit as a funds transfer method, a financial institution or depositary must verify the accuracy of the financial institution's routing transit number (RTN) and the taxpayer account number and account type indicated on the enrollment form. The taxpayer must ensure the completed enrollment form gets to the EFTPS enrollment processing center. The financial institution or depositary may offer this delivery service to its customers.
2230.30-ACH Debit Prenotification Process
The TFA may originate a prenotification entry to the account indicated by the taxpayer on the enrollment form for taxpayers that select ACH debit as their payment method.
Upon receipt of a prenotification entry, the financial institution or depositary verifies the taxpayer's account number and account type. If the taxpayer's account number and account type are correct, the financial institution or depositary takes no further action. However, if the account number and/or account type are incorrect, the financial institution or depositary must initiate a return or notification of change (NOC) entry to Treasury's account within 6 banking days of receipt of the original prenotification entry.
Treasury may impose an interest assessment against a financial institution or depositary that fails to respond to an incorrect prenotification entry. It assesses interest for the lost value of funds resulting from live ACH debit payments returned because of incorrect account numbers or account type information. Refer to Section 2250 for interest calculation information.
Section 2235-Conditions for Making an EFTPS Payment
A financial institution or depositary may establish conditions the taxpayer must satisfy before it will effect the electronic tax transaction. For example, a financial institution or depositary may specify a cutoff time for receipt of a customer's Federal tax payment instructions. If conditions are not satisfied, the financial institution or depositary may return an ACH debit entry and/or refuse to originate an ACH credit entry or a same-day tax payment.