discrepancy between client letter re: estimated tax payments and actual payments

[Robbie]

I have a client who wants to cancel his june 16 scheduled estimated tax payments.  He couldn't do it when he called the IRS as my letter to him specifying the scheduled payments differ from the actual calculation in the 1040es worksheet.  For example, my letter says you have 4 payments of $2,000 and the calculations shows that the payments calculated on the 1040-es planner, are for a $1900.  The $1900 was deducted from his bank account on April 15.  This is strange.  Has anyone else encountered this?  I am now worried about any other clients that may have this issue.  

I have tried deleting the Federal Estimate Template, and then adding it back but, it persists in showing an amount different from the 1040-es calculation

 

 

 

[Lee B]

Yeah, I sympathize

I use Drake and I do my own manual calculations and override the system calculations.

[Abby Normal]

Do you know how to edit letters? If so, which variable is used in the estimate letter section?

[Robbie]

I don't edit letters, but i checked the variable and it links to the voucher payment, which would be 1900 in my example,  All the calculations show $1900, the scheduled withdrawals are for $1900, but the estimate letter is stuck on the erroneous $2,000.  I think something got corrupted somewhere.

 

[Abby Normal]

There's more than one variable for estimate amounts. I was hoping you would tell us which one EXACTLY you are using.

[mcb39]

I do my own calculations for Estimated Payments and in most cases have them directly withdrawn.  However, this year I am having discrepancies with what we calculate and what the IRS says was actually paid.  In fact, we just settled on Tuesday over a case that went back to 2022 where our numbers and theirs did not agree.  I am beginning to be afraid to authorize Direct Withdrawals, even though I have my clients bring in their bank statements to prove the amounts that were taken from their bank accounts.  I am finding this to be a lose/lose situation as there is no live person on the other end to argue the matter with.

I had one client receive a letter stating that "we cannot apply your refund to your 2025 estimates, as requested".  They gave no reason and no refund.  This one is still up in the air.  Something strange is going on between the IRS and clients who make payments; even payments made through pay.gov.  My two cents worth.  I am finding that tax season is never over until it's over and you cannot argue with a recording.

[Robbie]

Problem resolved today successfully.  Response was excellent.  In the Client Communication Manager you select the federal client letter and the federal estimated letter and restore each, then delete all the letter options originally selected, including state letter options. Save.  Then restore your original letter choices. The problem should be corrected.

I was attempting this yesterday unsuccessfully.  The difference seems to be that you need to delete all letter options after you have restored the one(s) where the problem was evident.  I was deleting only the federal letter and the estimate letter.  Today, with the assistance of support, I deleted all letter options, and then attached all letter options.  That resolved the problem.

Apparently the client module letter is "sensitive" to changes so restoring the letters that were showing a problem, then deleting all letters and then adding them back resolves the issue.  

Not sure why this problem surfaced with this particular return.  I do remember there was a last minute change to the estimates just before filing. 

Also, the voucher amounts were correct.  It was only the letter that had the incorrect amounts.  I had difficulty determining what had actually been processed by the IRS as I couldn't find a verification in the ATX program to reassure me that the amounts on the vouchers were what was transmitted to the IRS. 

A satisfactory conclusion thanks to the support staff.