The Hidden Costs of Time in Tax Payments (And Why “Six Days” Can Be Too Long)

By Solon Angel

‍

You’ve seen this play out more times than you can count.

A client delivers their information late. You scramble to get the return completed. You double-check the numbers, confirm the amounts, and remind them about the deadline. They approve the filing and “submit the payment on time.”

What they don’t realize is that submitting a payment does not mean the payment is processed. Behind the scenes, that payment may take up to six days to move through the system. Six days where penalties, interest, and stress can quietly pile up.

This gap between submission and processing is one of the most overlooked pain points in tax payments. It’s inconvenient at best, and risky at worst. And while clients rarely understand it, accountants live with the consequences.

In this blog, we’re going to unpack the hidden costs of time in tax payments. Not just the operational inconvenience, but the reputational, financial, and emotional toll that long processing windows create for firms and their clients. 

Why Time Equals Risk

Penalties Create Immediate Frustration

Depending on how your clients submit payments, penalties and interest can apply based on when funds are received, not when a payment is submitted. Clients are often surprised by this distinction. From their perspective, they approved the payment before the deadline, so seeing a penalty feels unfair.

That frustration and mitigation requests frequently come back to the firm, even when the delay was outside its control.

Cash Flow Uncertainty Adds Pressure

For businesses, delayed payments introduce uncertainty around cash flow. Funds may remain tied up longer than expected, or additional payments may need to be made quickly to avoid further consequences.

This uncertainty creates stress, and clients look to their accountant for reassurance and clarity.

Firm Reputation and Productivity Take the Hit

When payment issues arise, firms absorb the impact (even if you think you don’t “handle payments”). Time is spent explaining processing delays, calming frustrated clients, and following up on payment status.

Even when work is accurate and timely, repeated payment delays can affect client perception and quietly drain productivity.

The Time-Sensitive Scenarios Firms Know Too Well

Long processing windows collide with real-world situations that leave little margin for error.

• Missed approvals are common. A return is ready, but approval comes late. When it does, there’s no longer room for a multi-day processing delay.
• NSF discoveries add pressure. A scheduled payment fails. Funds need to be moved. The payment must be resubmitted. What was already tight becomes urgent.
• Last-minute corrections often restart the clock. A change to the return means a change to the payment. Six days becomes twelve. Twelve becomes eighteen. Each adjustment compounds the processing time and added risk.
• Client procrastination. Clients come to you the day payment is due, letting you know they just submitted payment. 

None of these are rare. They’re part of everyday tax work.

Why the Tax System Wasn’t Built for Urgency

The tax payment system was built to prioritize consistency and control, not speed.

Most tax payments still move through legacy rails that rely on batch processing and fixed timelines. Once a payment is initiated, it enters a process that is largely out of a firm’s hands and difficult to accelerate, even when timing is critical.

Unlike many modern financial transactions, tax payments often can’t be resolved instantly using a debit or credit card, especially for larger amounts. Submission and confirmation are separate steps, and confirmation frequently arrives days after the payment has been sent.

That delay creates a visibility gap. Once a payment is in motion, it can be difficult to determine where it sits in the process or when it will be completed. Firms are left with limited information to share with clients who are waiting for certainty.

These constraints aren’t accidental. They reflect systems built for regulatory compliance and risk control rather than real-time responsiveness. As client expectations continue to evolve, the disconnect between how the system operates and how firms are expected to perform becomes increasingly clear.

What “Slow” Really Means for Firms

When payment processing takes days, the impact extends far beyond the transaction itself.

Slow payments lead to:

• More client emails and phone calls asking for updates
  
  
• More manual tracking and status checks
  
  
• More follow-up when payments haven’t cleared
  
  
• More explanations around penalties and interest
  
  

Firms absorb frustration when clients feel something went wrong, even if the delay was systemic. There’s more apologizing. More reassurance. More time spent managing outcomes rather than advising.

This is the hidden cost of slow payments. Not just time, but energy, focus, and trust.

How Remitian Is Changing the Equation

Urgency isn’t a flaw in tax work. It’s a reality.

Remitian’s Premium Priority Payments (Now Available in Canada, US Coming Soon) are designed to address the moments when timing matters most. This feature significantly shortens the processing window. What previously took up to six days can now be reduced to nearly one.

Ready to give your team the peace of priority payments? Book a demo with our team. 

A Faster Tax Payment System 

Tax work rarely unfolds neatly. Deadlines compress. Details change. Approvals come late. Systems lag behind reality.

The issue isn’t urgency. It’s when systems aren’t built to handle it.

Long payment processing windows turn manageable situations into stressful ones and create unnecessary risk for firms and their clients. Priority payments acknowledge how tax work actually happens and provide a way to respond without panic. f

FAQ

Why do people wait until the last minute to pay taxes?
Clients often delay due to cash flow concerns, uncertainty about amounts owed, or waiting on final information. 

If I file on time but pay late, am I still late?
Yes. Filing and payment are separate obligations. Filing on time does not extend the payment deadline.

If I submit a tax payment on time but processing takes a few days, am I late?
Potentially. Penalties and interest are generally based on when the payment is received, not when it is submitted.

‍