Gaaaack!!! My check to the IRS may bounce....

[Gardening Grandma]

After referring to my ex DIL as a "twit" on another thread, I have to confess to a major act of twittery. Thank goodness this board is anonymous......

I am in the process of moving our investment accounts from a full service brokerage to Vanguard. On Wed, over the telephone, the electronic transfer was initiated. Today, I just realized that one of the accounts had two outstanding checks - both written and mailed on April 9. One to the IRS and the other was a LTC premium. I can only hope that the old company moves slowly enough that the checks clear before the transfer takes place.... UGH!!!

I called Vanguard and they said, "Yep, the transfer has been initiated on their end"....

Wondering if I should simply mail the IRS another check (on a different account) pre-emptively?

[bean29]

Gardening gradma, I would wait. (I just realized this is the quick reply box. Not sure if I will be identified I am bean29)

If you are a twit, well then so am I. I already admitted that I "bounced" a payment to the IRS Last year. My payment was $8,000 and I forgot which account my EFTPS draw pulls from. I had the money in the bank, just not in the account the IRS tried to pull it from. They charged me $20-30 for the bounced check. And I paid the bank a bounced check fee too.

Hopefully you can put some money back in the account the IRS payment is set to draw from and fix it before it bounces. They owe you a favor for giving you a bad check anyways.

Good luck.

[Deleted]

Have you tried calling the full-service place? They can perhaps put a hold on Vanguard's request and not release the funds to them. Or they may allow you to deposit sufficient funds (the one you mention from a different account) in order to cover this.

You might also call the IRS although they will be pretty busy today. You should definitely do that before simply sending another check. They will want some paperwork accompanying it.

[Gardening Grandma]

Thanks bean.
There IS money in the account right now - but when it gets transferred to Vanguard, the account will be closed.. SB is so slow that I'm hoping the check clears before they process the transfer....

Thanks for letting me know it does happen and is not the end of the world. The charges are simply "stupid taxes".... (Not a DR follower, but I do like the term).....

susanna
Calling SB might be worthwhile - I really hate talking to them though..... If I mail the IRS another check, I can include the voucher I mailed with the first one. I filed electronically and only needed to mail the voucher with the check.....

[ameiko]

That sucks. I owed them about 100 bucks this year and it seemed to clear two days after I mailed it out. Uncle Sam wants his money and he wants it now! You'd think he was in debt or something...

[oreo]

The problem she has is that once the money is transferred the account will be closed so she wouldn't be able to transfer the money back.

I'd be surprised if it takes more than a day to withdraw the money once a transfer is initiated. What I've found is they take out the money pretty quickly, then it goes somewhere for a few days before you can use it yourself.

I'd at least call the other place where you wrote the check and tell them you'll send another. At least if they don't try to cash it you'll save on the bounced check fee there.

I don't know how much you owe but my bigger concern than the bounced check fee would be the "penalty" for not paying on time. My accountant efiled my taxes before I really looked at them. I'm getting a refund. When I looked at them, I noticed that he forgot to add something in my income. I wanted to do a correction right away so I wouldn't have to pay a penalty for owing money. Like ameiko I bet they take the money out of my account before they put the refund in!

[Deleted]

GG, I thought of something that MIGHT work in your favor.

You say Vanguard has already initiated the transfer. But what does that mean? Have you signed something and sent it to Vanguard? They won't send anything to Smith Barney until they have your signature.

If you haven't, you may be able to stall until the transactions go through. I think Vanguard even gives you a generous time frame to complete your end.

I don't remember my transfer to Vanguard from Merill Lynch being particularly fast. Part of that is because ML required a medallion signature guaranty. I tried to look up online if Smith Barney did. If they do, you will have to take the forms to the bank . . . again, an opportunity to stall.

[Gardening Grandma]

Susana,
I "signed" the transfer authorization electronically. I don't THINK that SB requires a medallion signature, but for once, I hope they do...... They have been so slow in the past, that I'm hoping they will this time.

Tt, thanks. Spent the day helping my son move, so may make it a glass of wine...... This is probably payback for calling my ex dil a twit :-)

Just checked my account at SB. Neither of the checks have cleared......