Question

What does this actually mean 'Wires received after 5 p.m. ET will be rejected and returned to the financial institution.' Same-day tax worksheet

Forum|Forum|5 years ago
October 15, 2020
1 reply
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I was going to make a foreign wire transfer to the IRS using the Same day tax work sheet found at https://www.irs.gov/individuals/international-taxpayers/foreign-electronic-payments and noticed at the bottom it says 'Wires received after 5 p.m. ET will be rejected and returned to the financial institution. Wires received after 5 p.m. ET will be rejected and returned to the financial institution. FTCS does not warehouse payments for the next business day'.

Does this mean they will outright reject the transfer or is telling my bank to try again tomorrow. Same day foreign wire transfer seems almost impossible. Am I worrying for no reason?

Not A Product Question

P

pk12_2

Employee

@intertax , as I read the referred document from the IRS, it is not surprising because this is the general practice even in domestic wire transfers. Your local bank ( transferror ) would be aware the settlement cannot occur after certain time of day ( domestic is 2:00PM Pacific or 5PM ET). Banks will typically not wire transfer unless they can meet the deadline. Bottom line is you do not have to worry -- your bank will send out wire transfer in time to be affected ( even if it the next day local time).

Hope this helps.

I

intertaxAuthor

Thanks for the response but if there is a scenario it does get rejected will my bank try again?

P

pk12_2

Employee

@intertax , whereas I have no knowledge about the workings of your particular bank , the wire transfers that I have initiated from US to other countries have always worked and I suspect that if a bank cannot affect the transfer they will indeed come back to you to seek new instructions if that is required ( e.g. the receiving bank rejects because of account detail errors ). All IRS is trying to alert you on is that you cannot claim post mark privilege in computing interest and penalty ( if applicable ) i.e. it is the date of receipt in their account that will be used for all purposes including penalty and interest charges.

If you are still unsure , perhaps you should consult (a) your bank and (b) the IRS section at the nearest US consulate ( most consulate/embassy have IRS section especially in countries with sizable Expats ( military or otherwise)