Direct Debit for a balance due on a 2017 Efiled return...does that work?

[Just-Lisa-Now-]

I've noticed that direct deposits on prior year E-filed returns arrive as checks, they don't direct deposit...but will they take a direct debit?

Just sent one in, didn't get any flack from the program about todays date being entered for the date of debit....guess we wiill see what the 9325 shows once its accepted.

[IRonMaN · Accepted solution]

I thought I saw something here once upon a time that you couldn't do the electronic banking thingy.  But who knows, maybe that was 10 years ago and now you can do it.

[Just-Lisa-Now-]

Wow, it was accepted already and Form 9325 shows the electronic funds withdrawal was accepted for processing. I scheduled it for today, so I guess I'll wait until Monday or so and ask the guy if the money came out of the account.

Some other preparer had been hanging onto his 2017 return, didn't file an extension, didn't file the return, she finally just last week handed his stuff back to him and he brought it to me.    He lost his house in the CA wildfires in 2017 and she thought he would have a loss from that, then she got sick and some other yadda yadda bullshit (I spoke with her)....but she didn't ever ask him for his basis in the house or the FMV before the fire or how much $$ insurance gave him...he didn't have a loss!  His basis was so low (bought the house in the 90's) he actually had a gain from the involuntary conversion, thankfully his house is being rebuilt already.

He owed over 5K for 2017, I told him to bring me the IRS penalty letter when he gets it and I'll see if we can get some of the penalties waived.  I feel bad for the guy, he trusted her to take care of things and she totally dropped the ball.

[IRonMaN]

I have a return sitting in front of me as we speak.  They brought their return in to a local preparer last year.  He was dealing with some health issues and it was their first year dealing with the preparer.  They waited and waited for their return to be completed and never saw a copy of the return until one day they got a notice in the mail from the IRS looking for payment on their balance due.  :open_mouth:

[Just-Lisa-Now-]

So he filed it and never told them or sent them a copy?  Did they sign the 8879's?  

I'd like to get this lady to have to pay the penalties with her E&O insurance...but since she didn't actually file the return, she did give him a copy of what she had prepared, all in a neat folder like it had already been filed... I had to call to see if it was filed or not....it was not....she told me "no it wasn't ever filed, but I didn't charge him for my time preparing it!"

[IRonMaN]

They never signed 8879s and didn't see a copy of the return until after they got the IRS notice.

[Just-Lisa-Now-]

uh oh...so what kind of recourse do the clients have?

[IRonMaN]

They paid the tax and went on their merry way but obviously didn't go back to the preparer.

[Just-Lisa-Now-]

Just in case anyone else asks..YES they will take a direct debit on a prior year Efiled return!

[IRonMaN]

Thanks for the info :smile: