DANRVAN Posted April 6 Report Share Posted April 6 I am considering direct debits of estimated tax payments for some older clients. Has anyone here had any issues using direct debits for that purpose? It seems like there has been some discussion here before but my search came up empty. Thank you for any comments you might have! 1 Quote Link to comment Share on other sites More sharing options...
BrewOne Posted April 6 Report Share Posted April 6 has worked fine with the few clients I've tried it. And as you mention, they have been older clients; younger ones I've pointed them towards Direct Pay. Just had another instance of client's check going missing--the 1040-ES arrived but not the 1040-V. Even though elderly, I think he is savvy enough with the computer to use direct pay going forward. We have a serious problem in my area with stolen checks, including those dropped off inside the Post Office. 6 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted April 6 Author Report Share Posted April 6 25 minutes ago, BrewOne said: has worked fine with the few clients I've tried it Do know if there is a way to confirm that the payments have been made without looking at bank statements or online banking? Quote Link to comment Share on other sites More sharing options...
BrewOne Posted April 6 Report Share Posted April 6 I think they need an online account, because Direct Pay (which doesn't require an account) will ask for a confirmation number if you want to look up a payment 1 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 6 Report Share Posted April 6 1 hour ago, DANRVAN said: I am considering direct debits of estimated tax payments for some older clients. Has anyone here had any issues using direct debits for that purpose? It seems like there has been some discussion here before but my search came up empty. Thank you for any comments you might have! There's a current discussion in the Drake subforum here that touches on it. It works well, but there is no confirmation number or record without logging onto the IRS account or verifying through bank activity. I've used direct pay for the balance due but not for estimates. I really don't want that level of responsibility for clients' payments. 2 1 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted April 6 Report Share Posted April 6 I have quite a few clients that use direct debit. Never had any problems. They like better because they don't have to remember to do it. 4 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted April 6 Author Report Share Posted April 6 23 minutes ago, jklcpa said: I really don't want that level of responsibility for clients' payments. That is my concern as well. This couple have been long time and loyal clients. She has dementia; he is still sharp at 89 but slowly declining. He can decide which way to go on this. 18 minutes ago, schirallicpa said: I have quite a few clients that use direct debit. Never had any problems That is good to know. It seems like the auto pays should go into the IRS system and generated there on each payment date. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted April 6 Report Share Posted April 6 Years ago, I used direct debit, and the IRS took the money twice. One phone call and they immediately acknowledged, but it took them 10 weeks to refund the 'double dip'. LONG ago, and I'm certain it's fixed, but I've never used it since. I have an instruction sheet with instructions for direct pay for Fed and State, and I pay a client who is retired to come in 4 times a year and phone all my clients who have estimated payments reminding them of the same. Clients love it, and it's a 'touch' in the off season time. I print vouchers when I do the tax return for folks who want to send checks, and we keep a spreadsheet of 'estimated payment' clients. My son is getting ready to go to college, and he says he's going to take over my business someday. When that happens (or when he changes his mind and I sell my business), he can move the estimated payment system into this century ... my retired client might be tired of making the phone calls by then ;). 5 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted April 7 Author Report Share Posted April 7 1 hour ago, jasdlm said: and phone all my clients who have estimated payments reminding them of the same. Clients love it, and it's a 'touch' in the off season time. That is also my practice. In this case the client will continue to mail in his payments on a quarterly basis. He has a daughter that lives close by with a POA that will assist him. Thank you for all your replies! 3 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 7 Report Share Posted April 7 If he has a daughter who assists him, you might ask her to use DirectPay and your state equivalent. Instant confirmation. 1 Quote Link to comment Share on other sites More sharing options...
Corduroy Frog Posted April 7 Report Share Posted April 7 Never had a problem with Drake. In fact, I endorse direct debits for estimated taxes instead of relying on voucher coupons for that purpose. My experience with the coupons has been very bad due to the clients. When reviewing for the succeeding year, the conversations go something like this: Frog: "Did you mail in the payments with the coupons I sent you? What about June 15th? Client: "uh, no. Took the kids to Disney World." Frog: "What about September 15th? Client: "uh, no. Our lawnmower broke down and we had to buy a Cub Cadet." Frog: "What about January 15th? Client: "no way. Had to pay credit cards for all those Christmas presents." Frog: "Sorry to hear all that. Looks like you will have to pay (again) this year." Client: "OMG!! Don't tell me that!!! You've got to do something to help me....." 2 2 Quote Link to comment Share on other sites More sharing options...
Randall Posted April 7 Report Share Posted April 7 I give my clients a memo with dates and estimated amounts for the four quarterly payments. I print the vouchers for them and even give them envelopes with the address printed. That's it for me. They're on their own the rest of the year. I remind them to make photo copies of both check and voucher. If they want to do direct payments, they're on their own. But I remind them to get some kind of printed confirmation. 5 Quote Link to comment Share on other sites More sharing options...
Randall Posted April 7 Report Share Posted April 7 I also leave the amounts blank on the vouchers in case they want to change the payment amount. 2 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 7 Report Share Posted April 7 I tell them they can lower the amount if they want, but to write it down on the list I gave them &/or make a copy. I push DirectPay and the state equivalent, because they get instant confirmation. I tell them to save the confirmation AND to send it to me each time they pay an estimate. That way I have amounts and dates. If I haven't gotten 3 confirmations from a client by December, I remind them and adjust their 4Q amount if needed. I also strongly suggest the 4Q be paid by 15 December (instead of 15 January the next year) so when they look for all their 2024 expenses, that 4Q shows up as 2024. 6 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted April 8 Author Report Share Posted April 8 18 hours ago, Corduroy Frog said: experience with the coupons has been very bad due to the clients. Never any bad experience. They get vouchers, envelopes, and a payment schedule. 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted April 8 Author Report Share Posted April 8 13 hours ago, Randall said: I also leave the amounts blank on the vouchers in case they want to change the payment amount. I prefer to put in the amount so there is no question about what they need to pay. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 8 Report Share Posted April 8 There is also EFTPS that allows scheduling the current and/or future payments at one time. It does give the ability to cancel or change those not yet paid, but the limitations are that it must be linked to one bank account and does not have the other functions that having an IRS account has. 2 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted April 8 Author Report Share Posted April 8 12 minutes ago, jklcpa said: There is also EFTPS That is how I pay our personal estimates. 1 Quote Link to comment Share on other sites More sharing options...
Randall Posted April 8 Report Share Posted April 8 I still send in checks with the vouchers for myself. I guess I'm just old. Quote Link to comment Share on other sites More sharing options...
mcbreck Posted April 8 Report Share Posted April 8 Not only is there a perceived risk on your behalf if the payment doesn't get made (maybe you typed it wrong?), there is also the problem for people who don't have a lot of money that a withdrawal will get bounced for insufficient funds and then a fee is charged. Who's going to get blamed if there is a problem? 2 Quote Link to comment Share on other sites More sharing options...
mcbreck Posted April 8 Report Share Posted April 8 On 4/7/2024 at 2:36 AM, Corduroy Frog said: Never had a problem with Drake. In fact, I endorse direct debits for estimated taxes instead of relying on voucher coupons for that purpose. My experience with the coupons has been very bad due to the clients. When reviewing for the succeeding year, the conversations go something like this: I have a client who essentially refuses to make the Jan 15th payment. Now I just give him 3 coupon payments and skip that one. 2 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 8 Report Share Posted April 8 6 minutes ago, mcbreck said: Not only is there a perceived risk on your behalf if the payment doesn't get made (maybe you typed it wrong?), there is also the problem for people who don't have a lot of money that a withdrawal will get bounced for insufficient funds and then a fee is charged. Who's going to get blamed if there is a problem? ^ This, or if client changes bank accounts. 2 Quote Link to comment Share on other sites More sharing options...
Lee B Posted April 8 Report Share Posted April 8 1 hour ago, mcbreck said: I have a client who essentially refuses to make the Jan 15th payment. Now I just give him 3 coupon payments and skip that one. I have a client who doesn't want to mess with making 4 different estimated payments, so I combine her estimates and she makes one payment on April 15th. 3 Quote Link to comment Share on other sites More sharing options...
Randall Posted April 8 Report Share Posted April 8 I just had an extension. She never makes the estimated payments. Just one big one with the extension. 2 Quote Link to comment Share on other sites More sharing options...
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