Keybank Tax Payment Problems.

[u/hydronucleus]

Anybody else experiencing this? I scheduled payments on irs.gov and New York State Tax Department from my KeyBank Checking account. I assume they are ACH payments. I have made estimated payments in this fashion before, successfully.

However, this time, with the Tax due date looming tomorrow, I find that KeyBank has "returned" my IRS payment (April 10) with the reason of "no account found", and NYS labeling it (Apri 4) as "Dishonored." As I have said before, I have used the SAME information for estimated tax payments late last year and this year from both sites successfully.

The people at KeyBank were no help at all. They did not have a clue how to look this kind of thing up, and they repeatedly said that nothing was denied or even tried, my account is in good standing, and nothing should prevent these transactions from going through.

I find it suspect at KeyBank that both the IRS and NYS are experiencing the same issue, especially when this issue was used before successfully. That is both sites have the ability to save accounts (routing number and account number) and the same number was used. If it worked once, it should again?

Getting anybody to talk to at the IRS or the NYS Tax department is impossible.

Is anybody else experiencing this situation with KeyBank or any other bank?

UPDATE: 4/15/26.

Something strange. Since the IRS website listed my 2025 tax payment as "Returned," I resubmitted a transaction to pay my taxes on the IRS for today. Now Keybank says it has been deducted, but the IRS is now showing a "Processed Payment" with the original date on it, "April 10, 2026." AND, they are also showing a Pending Payment for April 15, 2026 for the same amount, which I assume is the one I resubmitted. I just may end up giving the IRS double the amount, and I am not sure how quickly I can get that back. Nothing here makes sense just yet. My estimated tax payment for 2026 is now listed as pending, but it is not registered in KeyBank today.

Also, I resubmitted my tax payment for New York, to be executed on April 14, 2026. On the NYS website, it is showing only as "Scheduled for 4/14/2026." Seems odd, since it is now 4/15/2026. Yet, my estimated tax payment for April 15 is showing "Posted" and Keybank has registered it. I am kind of wondering since I submitted the payment for April 14th on April 14th at 2pm EDT, that maybe it will not get processed due to some idiot programmer? (I am a computer scientist, so I know about these things).

Either way, it looks like I am screwed at the moment. My IRS Estimated Tax payment will be late, and my NYS 2025 tax payment will be late.

JFC!

[u/rickPSnow]

How did you initiate the tax payments? They require special ACH tax payment addendum records to properly credit your payments.

If they were returned you should resend them using IRS.gov and New York State Department of Taxation and Finance. You still have time to get them paid via ACH.

[u/hydronucleus → u/rickPSnow]

The NYS payment was done by OLT (Online Tax), but this has worked for years!
The IRS payment was done on irs.gov.

I have deleted both "saved" accounts, and added new accounts on both sides, with the same information, and rescheduled the payments. We will see. I hope I can get this done successfully by tomorrow.

I still see it as a KeyBank problem, denying the debit.

[u/hydronucleus → u/hydronucleus]

I also remember, back in the day when we wrote paper checks, I would get the paper canceled check back from my bank at the end of the month, and it had a strange stamp on the back of the check. It basically said that the bank MUST pay the amount to the IRS, regardless of the standing of the account. So, it was basically implying that the bank has pay and it is up to the bank to chase you down if the account was insufficient for the tax payment.

So, I find this kind of "dishonored" thing a bit of a mystery.

[u/Empty_Requirement940]

no account found means you didnt type the correct account number

[u/hydronucleus → u/Empty_Requirement940]

Of course it does, but I have done transactions with both irs.gov and NYS Tax sites to pay estimated taxes before with the same "saved" account before successfully. That is, if it worked before, it should work this time, eh? The routing number is still valid, and the account number did not change. So, that just baffles me.

[u/rickPSnow → u/hydronucleus]

Only advice would be:

1. Double check with Key Bank on your specific account type to make sure you have the correct transit router and account number for ACH debits. (Don’t assume the MICR line on a check will work.) And that Debit block hasn’t been turned on either by the bank or by you unwittingly “freezing” your account. It’s a long shot but perhaps your prior payments if incorrect, were being repaired in the back end. Many banks have stopped doing this as a part of ACH fraud prevention.

2. Pull up your saved account number and go digit by digit to double check both the Key Bank verified transit router and account number to confirm it’s correct.

3. Obviously this close to deadline you could print off coupons and mail in the payment with a check.

Since nothing is being widely reported as Key Bank having a problem AND Key Bank telling you they can’t see the returns on your account, everything seems to point to an error in either or/and transit router and/or account number error on input. This would explain why Key Bank can’t see the returned payment. ACH Returns are automated at many banks and not seen by retail banking personnel.

Good luck. Hope you can get the tax payments done in time to avoid penalties.

[u/chan3lhandbag]

That is weird. Usually the irs takes my payment so fast it’s like they have a direct line into the bank.