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Electronic payment of balance due

rioalgom
Level 2

E:filed a C Corporation return on 4/28/2020, set for electronic payment of federal balance due.  Left the date blank, which should have resulted in a July 15 payment date (transmittal letter confirms this).  Client informs me that the payment was drafted April 28.  Any input on why this would happen? 

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George4Tacks
Level 15

If you go back to that input where you checked the box and left the box blank, then press F1 while on the blank box you should see: 

  Electronic payment date [O]

Direct Deposit of Refund (8050) / Electronic PaymentScreen 4; Code 88

The program uses the return due date for the electronic payment date for returns filed before the return due date. The electronic payment day will be the transmission date for returns filed after the return due date.

Enter the date, in mm/dd/yy format, if you want the debit of the electronic payment to take place before the return due date. When the return is filed before the due date, do not enter a date later than the return due date. The IRS e-file program does not allow the electronic payment date to delay the return due date for holidays. If the taxpayer’s bank is closed for a specific holiday, the electronic payment will be withdrawn the next business day.

For returns transmitted to the IRS after the return due date, the requested payment date cannot be later than the transmission date. The electronic payment date should be the same date as the date of transmission.

Your assumption was correct, but the actuality is this year is screwy and the program probably still treated the due date as the original due date, not the new extended due date. 

Maybe @IntuitBettyJo could have Lacerte look at this and comment and do a new update to correct.

Alternatively, @rioalgom DID YOU CHECK THE BOX TO APPLY CARES ACT? This, I believe is the key to line this stuff up with new law. It is at the top of the Miscellaneous/Other Information and it was snuck in as a new entry, with diagnostic warni


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rioalgom
Level 2

Thank you @George4Tacks for the very helpful reply.  I did not check the CARES Act box; that might be the reason.  I notice that in the individual program, there is a critical diagnostic if this box is left unchecked.  This diagnostic was not generated in the C Corporation program.

@IntuitBettyJo I wonder if it would be possible to correct the program so the transmittal letter does not mislead as to the payment date (i.e., July 15 does not appear on the letter unless the CARES Act box is checked). 

Another possible solution on the user side might be to just override the payment date. 

I don't envy the Lacerte programmers this year.  This has to be by far the most challenging year they've ever faced.

 

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George4Tacks
Level 15

I know they messed with the ES for 1040. Instead of two 7/15 payments they doubled and made one. Then they went back and split them. To get one you need to do some override.
In defense of all software providers, this has been a real roller coaster year. Preparers are anxious to get them out the door NOW, but waiting is a good game plan now. I am sure Lacerte is pedalling as fast as it can. 🚲🚏


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