November 3 or no??

[Corduroy Frog]

For this year only, Tennessee has been told they have until November 3rd to file, pay, pay estimated taxes, whatever.

A return I completed owes $35,000 (not the real number) and client wants to pay it October 15.

Drake won't allow it.  Their message says April 15 is the last acceptable date, and goes on to say that this is true even for states with disaster declarations.

I've second-guessed Drake before and I'm usually wrong, but I'm wondering if they've updated properly.

[TexTaxToo]

The MeF (efile) system will not allow future direct debits to be scheduled after April 15 when efiling a return.  The IRS does not modify it for postponements due to disaster declarations.  I believe the taxpayer can still schedule future payments using Direct Pay or EFTPS at  https://www.irs.gov/payments

[Catherine]

TexTaxToo is correct, and you are correct, Corduroy Frog. 

You do have until the later date. But Drake won't allow scheduling payment after the *current* date if that date is after 4/15. The only way to pay later, electronically, is by doing so online via Direct Pay or EFTPS. Or, your client can mail a check to arrive by the date they want to pay. The IRS is very quick about cashing checks; it's about the only thing left that they handle expeditiously. 

[Gail in Virginia]

26 minutes ago, Catherine said:

TexTaxToo is correct, and you are correct, Corduroy Frog. 

You do have until the later date. But Drake won't allow scheduling payment after the *current* date if that date is after 4/15. The only way to pay later, electronically, is by doing so online via Direct Pay or EFTPS. Or, your client can mail a check to arrive by the date they want to pay. The IRS is very quick about cashing checks; it's about the only thing left that they handle expeditiously. 

I think the reason checks are cashed expeditiously is that the IRS does not do it.  They contract it to a lockbox service that opens the mail, deposits the checks and sends the IRS a report.  I might be wrong, but that was my understanding. 

[Lee B]

46 minutes ago, Gail in Virginia said:

I think the reason checks are cashed expeditiously is that the IRS does not do it.  They contract it to a lockbox service that opens the mail, deposits the checks and sends the IRS a report.  I might be wrong, but that was my understanding. 

https://www.irs.gov/pub/irs-pdf/p3891.pdf

[BulldogTom]

20 hours ago, Corduroy Frog said:

For this year only, Tennessee has been told they have until November 3rd to file, pay, pay estimated taxes, whatever.

A return I completed owes $35,000 (not the real number) and client wants to pay it October 15.

Drake won't allow it.  Their message says April 15 is the last acceptable date, and goes on to say that this is true even for states with disaster declarations.

I've second-guessed Drake before and I'm usually wrong, but I'm wondering if they've updated properly.

If your client wants to pay on Oct 15th, you could hold the return and file on that date.   The funds will be withdrawn within about 2 business days.

ATX has the same issue as Drake, you can't go out even 1 day.   I filed a return a few weeks ago after the end of the banking day, so smart me I put in the next day as the bank withdrawal date.   REJECTED.   Even at 10PM.  It is just the rule that if you owe and you efile and you want the direct debit option you pay immediately...but I don't have a source for that rule.

Tom
Longview, TX

[Corduroy Frog]

Sounds like Drake (and ATX also) are not the problem, but the IRS itself won't allow direct withdrawal after April 15, even if they have extended the due date.

Doesn't make sense.  I think my client wants to pay on October 15th, so I'll just send him a voucher and he can send in a check any time he wants.

Thanks to all -  

[Lion EA]

Send him to IRS DirectPay so he can get a payment confirmation:  https://www.irs.gov/payments

 

[Lee B]

11 hours ago, Corduroy Frog said:

 

Doesn't make sense.  I think my client wants to pay on October 15th, so I'll just send him a voucher and he can send in a check any time he wants.

Thanks to all -  

Don't forget the new administration plans to stop mailing refund checks September 30th and to stop accepting payments by check then or shortly thereafter.