CA FTB Electronic Payment Requirement

[AngelicaD]

What happened to the box on Screen 3 CA Miscellaneous that allowed us to mark a tax client as Requires Electronic Payment?  For tracking purposes, we need to have an option to mark these clients as required to pay their CA tax liability electronically. This option needs to be permanent and automatically carried forward each year. If not, and the client pays by check then the FTB will assess a penalty.

There is a box for Participant in EFT/Web Pay Program,  but if I check this box and the client has opted to electronically pay their tax liability through LaCerte's e-pay, then I get a diagnostic (ref# 60810). 

If I uncheck the box for Participant in EFT/Web Pay Program,  then I receive a diagnostic (ref# 12550) that the client has e-payment requirement. 

LaCerte needs to fix this. Make it make sense LaCerte!

[George4Tacks]

If you press F1 at that box you get this, which says this is the new replacement box for "If Requires Electronic Payments"

1 If Requires Electronic Payments

CA Miscellaneous

Screen 3; Code 1105

Select the box or enter 1 if the taxpayer is required to make payments electronically. If you enter 1, the program includes sections in the filing instructions and client letter instructing the taxpayers to transmit payments to the FTB electronically using either FTB’s Web Pay or paying by credit card rather than submitting paper checks with the tax return or estimated payment vouchers. Also, checking the box suppresses forms 540-ES and/or 540-V.

The client letter and filing instructions remain unchanged for returns that are electronically filed and both boxes for “Electronic payment of balance due” as well as “Electronic payment of estimated tax” have been checked in the Electronic Only subsection of the California Direct Debit input section in Screen 3. Check the box for “Requires Electronic Payments” to eliminate the related diagnostic.

My reading for the 60810 error code is it can be ignored if you are sure FTB will be accepting of direct debit, vs payment through the FTB EFT. Maybe @IntuitGabi could reach out for some clarification.

[AndresVTB]

I called about this yesterday, the rep said it is an intentional change by Lacerte, that they were asked to do it. We don't like it.

[PASF]

I have clients that are mandatory e-pay in CA. Removing the button/ box "requires electronic payments" from the MIsc Info section causes me to lose track of who is required to pay electronically. I have clients making million dollar estimates and balance due payments and penalties for not e-paying are large. Please fix this problem. Re-insert the button/box entitled "requires electronic payments" in the misc info section.

Also in the Misc Info section the button entitled "Participant in EFT/Web Pay Program"- what is this for? If it was meant to replace the "requires electronic payments" button above, it is causing critical e-file diagnostics.    

[AndresVTB]

We are debating, if Lacerte doesn't revert this, re-clicking the Web Pay box after the return/payments are completed.

[George4Tacks]

@AndresVTB Have you tried e-filing one of these. I started one that is not ready to e-file and I think  it will go through. It is not a Critical e-file diagnostic, more of a "Are you really sure you want to do this" warning. If Fed goes and CA fails, then do what you are debating.

If you do process one, let us know.

[PASF]

Tried e-filing a client's return with CA that is subject to Mandatory e-pay (with the box "Participant in EFT/Web Pay Program" check - I received critical e-file diagnostic. Please fix this. Who needs one more stressor during tax season.  

[OldCPA]

Anybody efiled with the #12550 diagnostic which says :this diagnostic will not prevent the return from being electronically filed.' had any problem with the CA payment being posted?  The FTB website instructions allow us to pay through our software:  

• Request an electronic funds withdrawal (EFW) on your e-file return

So I'm getting ready to do a few & was wondering if anyone else had this issue but successfully had the payment be processed?