Can Payroll IRS payment be resubmitted from QBO if it was initially denied due to a bank restriction that has since been cleared?

Good day, @SmilingInLINY.

QuickBooks Online Payroll will still show the e-payment as paid even it was rejected. This is because the payment was processed inside the program. 

However, this will still be marked as Rejected since the receiving agency has received and rejected the form. You double-check its e-payment status by following these steps: 

1. Click Taxes, then Payroll Tax.
2. Select View Archived Forms in the Quarterly or Annual forms section.
3. Choose the form name.
4. Check the E-file Status.

Additionally, you can still resubmit the payment from QuickBooks even it was denied. Though, you need to delete or void the tax payment first before performing this action. 

Once done, follow these steps to pay and file your payroll taxes: How to pay or file state and federal payroll taxes online.

As you’re working to finish out your taxes, please check our Payroll Tax Compliance Links to understand when your taxes are due.

Just tag my name in the comment section if you have any other concerns or questions. I'll get back to you as soon as I can. Stay safe.

Thanks for coming back to us, @SmilingInLINY.

To fix this, I'd recommend you directly contact the tax or IRS department. This way, they can check your account and help fix the issue.

I've also added this link about entering payroll in QBO: Manually enter payroll paychecks in QuickBooks Online.

Also, I encourage checking our Help articles page to learn some tips and tricks in managing your QBO account. From there, you can read great articles that can guide you through the steps by steps process.

Don't hesitate to drop a comment below if you have other questions. I'm always here to help. Take care.