michaelmars Posted March 12, 2011 Report Share Posted March 12, 2011 anyone having the problem where the gov't is takig the money early? client just called and said the irs took the money yesterday when it was set up for 3/14 and this caused him to bounce a bunch of checks Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 12, 2011 Report Share Posted March 12, 2011 Not good, but as they say don't write checks if you have the money. Have the TP call the IRS to cover the bank charges. JK. All kidding aside, TP should of known not to write checks if he/she did not have enough to cover, not much you can do for them. Quote Link to comment Share on other sites More sharing options...
Maribeth Posted March 12, 2011 Report Share Posted March 12, 2011 anyone having the problem where the gov't is takig the money early? client just called and said the irs took the money yesterday when it was set up for 3/14 and this caused him to bounce a bunch of checks We've never, ever had a problem with the EFTPS taking money before the date of settlement. We HAVE had a problem when WE have put the wrong date down or applied the payment to the wrong year. I would have your client double-check their copy of the payment acknowledgement. Maribeth Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 12, 2011 Author Report Share Posted March 12, 2011 IT WAS ON THE 1120 that they took the money early and you are wrong about writing cks without money in the account. If a return done in feb has them take the money out 3/14 then they don't hve to have the money there till 3/14 and not on 3/9. this is a real serious issue Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 12, 2011 Report Share Posted March 12, 2011 I am with Maribeth. I have not had a problem with early withdrawals. If this is the case, you should call the IRS for the client and find out what they see on their end that caused them to take it early. Please let us know what you find out. If the IRS is actually taking payments early, I will not offer that as an option for my clients in the future. The IRS can process the check if they are going to change the rules. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 12, 2011 Report Share Posted March 12, 2011 Last year, the IRS debited one of my client's accounts twice for the same payment. It took weeks to get the money refunded,although when I called, they agreed immediately that the payment was made twice. I am currently in the 'I will never allow the IRS to debit my clients' accounts again' mode. Direct deposit of refunds - great, but payments due - I'm making clients write checks. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 12, 2011 Author Report Share Posted March 12, 2011 seems like feds and nys took the money early. i need to find out from atx what data got transfered with the efile Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 13, 2011 Report Share Posted March 13, 2011 Now I'm really confused. Every time I raise an objection to electronic filing and/or paying, I'm assured repeatedly on this forum and others that doing things electronically completely eliminates the probability of mistakes. As long as we do it right on our end, there won't be problems. Im SHOCKED at this turn of events... Quote Link to comment Share on other sites More sharing options...
jainen Posted March 13, 2011 Report Share Posted March 13, 2011 >>IT WAS ON THE 1120<< I'm not sure exactly how this works, but I've got a hunch you're going to lose this one. Page 4 of the INSTRUCTIONS to Form 1120 does say something about "the day before the deposit is due." Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 13, 2011 Author Report Share Posted March 13, 2011 >>IT WAS ON THE 1120<< I'm not sure exactly how this works, but I've got a hunch you're going to lose this one. Page 4 of the INSTRUCTIONS to Form 1120 does say something about "the day before the deposit is due." yeah but this is for an 1120 due 3/15 and although i set it up to come out on the14th they took it on the 9th. This is just making me think to hold all efiles until the 14th of each month for everyone that owes. Quote Link to comment Share on other sites More sharing options...
jainen Posted March 13, 2011 Report Share Posted March 13, 2011 >>they took it on the 9th<< Sorry. I misunderstood when on the 12th you told us they took it "yesterday." In my opinion, the solution is not to hold the efile and run everything right up against the deadline. I think it would be better to allow MORE time, not less. In general I recommend people not authorize withdrawals unless they have the funds available. Your arrangement sounds too much like the old idea of "float," by which a checkwriter would hope they could get the money into the account before the check cleared. That was poor business practice back then, and it's still poor business practice now. Still, I hope you do win. Electronic payments are now REQUIRED for many taxpayers, state and federal. We must demand the agencies follow consistent and reasonable policies that taxpayers can rely on. Quote Link to comment Share on other sites More sharing options...
Cathy Posted March 14, 2011 Report Share Posted March 14, 2011 It's just too easy to print a voucher for the payment due. Always tell my clients that it would just be "our luck" for IRS to take the amount out of the account on a daily basis rather than a one time payment. And, I do mean "our" luck as I know a client would consider it MY problem to fix it! Quote Link to comment Share on other sites More sharing options...
Cathy Posted March 14, 2011 Report Share Posted March 14, 2011 >>they took it on the 9th<< Still, I hope you do win. Electronic payments are now REQUIRED for many taxpayers, state and federal. We must demand the agencies follow consistent and reasonable policies that taxpayers can rely on. Don't think our treasury will ever turn away a payment for a tax liability sent by check that is owed as an end result of an income tax return that has been electronically filed....however, I never thought I'd see the day that I was told I must file all returns electronically either. Ah.......being close to retirement age never sounded so good! Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 15, 2011 Report Share Posted March 15, 2011 In CA, if you are required to pay electronically and pay by check, you get a penalty. I think it is 10% of the payment. For larger clients, it can be a big bill. How do I know? When I first came to my day job, I needed to make a sales tax payment right away. No one told me they were required to pay electronically and I did not have the prior controller's passwords to get in anyway. Sent the check and got a bill 6 weeks later. I called and got it abated pleading ignorance, but they told me the next time there would be no abatement. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 15, 2011 Report Share Posted March 15, 2011 Any update why it came out early? Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 15, 2011 Author Report Share Posted March 15, 2011 i am not going to deal with it until after 4/15. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 17, 2011 Report Share Posted March 17, 2011 March 17, 2011 IRS Sends 200,000 Balance Due Notices by Mistake Due to a computer processing glitch, the IRS mailed 200,000 CP-14 balance due notices to taxpayers who filed electronically. These notices told the taxpayers that their balance was due by April 15, even if they had already designated automatic withdrawal from their bank accounts. These notices were not to be processed in the middle of tax season, and instead should have been processed after the database had been updated to account for direct debit payments. The IRS has stated that if a taxpayer consequently pays twice using direct debit and check, the IRS will automatically issue a refund for any overpayment. It is important to note that not all taxpayers have received a Notice CP-14 in error. If the bank account listed on the tax return was listed incorrectly, a taxpayer would receive this notice. The IRS has posted Notice CP-14 FAQs. Quote Link to comment Share on other sites More sharing options...
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