6-15-2021 Deadline for Texas Business & Residents for 2021 Texas Disaster

[KevinK]

Is Lacerte working on correcting the due date language for instructions in business and individual 2020 tax returns for Texas? and when should we anticipate corrections from Lacerte? 

Is Lacerte working with the IRS to expand the Electronic payment date to 6-15-2021 for our Texas clients? Anticipated implementation date?

NOTE: Inform your Texas clients to pay using the IRS online payment feature is an unacceptable answer and 'Yes" I am aware of the ARP Act and its impact on the IRS personnel time and workload.

[asitax15]

Yes KevinK, great question.... We are here in Louisiana so this due date language effects EVERY return we do. You would think for the price we pay Lacerte for the software that they would have enough staff to keep up with the changes and send out updates.

And yes, we are all aware of the ARP Act and I agree that it is totally unacceptable to inform our clients to go online or just wait... So here we are... waiting.....

Also waiting on that unemployment $10,200 exclusion update. That effects quite a few returns also, and quite a few that have already been filed. So waiting on guidance about what to do on those returns.

[Jenhenheacpa]

I have been waiting for this change too.  I see your post was 4 weeks ago.  Lacerte, please advise us of when we can file extensions and returns so that the payments can be drafted on the correct date!

[amylloydcpa]

Impatiently waiting for the same updates here as well....has anyone received a response from Lacerte on this?

[Jenhenheacpa]

Unbelievable one, but yes.  Just this morning, Lacerte told me to file all of my extensions by May 17th as the software is not going to allow us to file extensions after that date even though ours are not due until June 15th.  And that any payments need to be made by check or on the IRS website if you want them to be made after June 15th.  So disappointed in Lacerte!  I plan to follow up with a few colleagues to find out how Thomson Reuters and CCH are handling this and I'll let you know.

[asitax15]

Yes, very disappointing.  Same here in Louisiana.  Just like I still have to override the federal due date for the letter to June 15th, otherwise it still says May.  They got LA due date corrected to June 15th but not federal??? Come on Lacerte!  You charge us way too much money not to be able to correct these issues. I guess Lacerte does not care about Texas, Louisiana and Oklahoma clients?? I will be interested in what you find out from CCH & Thomson Reuters as well.

[KevinK]

You must be jesting. Lacerte will not facilitate Texas taxpayers to file extensions between May 16th and June 15th?

Net taxes due on the filing of tax returns will fund electronically on the day returns are filed after June 15th. not sure I agree with the payments need to be made by check comment.

If a client wants their payment made on June 5th, simply e-file on June 5th and the IRS will yank funds out on that date. However, if May 15th extension date comment is correct, this posing serious problems with tax returns sitting with balances due.

I will be contacting Lacerte to clarify.

[Jenhenheacpa]

Please do!  I hope my customer service rep got it wrong but that is what I was told.  I am in Louisiana with the same June 15th deadline as TX and OK.

Filing and paying after May 17th is fine.  But not extending and paying with the extension.

[sjrcpa]

• I think Jenhenhea  will find that Thomson Reuters and CH say the same as the IRS has not and said they will not update the efile schema for June 15 extensions and payments.

[KevinK]

Interesting that the IRS is capable of postponing efile schema to May, but not to June. The disaster declaration permits the IRS to postpone these deadlines and the IRS has honored Code Section 7508A and its associated regulations for TX, OK and LA taxpayers, but will not facilitate their extension requests after May 15th?

[Jenhenheacpa]

Not the IRS...Lacerte!

[KevinK]

Read srjcpa comment. He/She is stating that the IRS will not update their e-file schema to accomodate TX/OK/LA taxpayers to electronically file their extensions after May 17th.

[Jenhenheacpa]

Well, that makes Lacerte's response more understandable anyway!  All I want to do is have them change the payment date though...I don't mind filing the extensions now but why can't I override the payment date?

[PhoebeRoberts]

You can override all you want; the return will be rejected by the IRS. This is an IRS issue, not a Lacerte issue.

[amylloydcpa]

I received the same message from Lacerte.  The rep told me that it is not their doing or their choice to not update the program for the extended deadline for LA, TX, and OK.  They said the IRS will not allow the program change.  It is an IRS issue, not Lacerte.  the IRS said they will determine on a case by case basis if the extension applies.

[KevinK]

Just got off phone with Lacerte Customer Service. Spoke with Olivia. Lacerte is working on an update to address the June 15th dates in the programming. According to her, the update will allow for the electronic filing of extensions up to June 15th.

She did confirm that payment dates cannot be set for after May 17th in current version, whether the update clears that issue up, she was unable to answer.

Who knows what the correct answer is. I will be monitoring the updates prior to May 15th and will e-file my extensions by May 15th, if the upcoming updates do not clear the issue up.

[KevinK]

For those interested and contacting Lacerte. The Lacerte agent was Olivia and the case number was 563430002.

[IntuitBettyJo]

Hi there, 

We are trying to get more info from the IRS, but you should probably plan to file the extensions by 5/17 if you want to e-file them. Any payments made after 5/17 would need to be made via paper check or through the IRS direct pay system.

If for some reason that changes based on info from the IRS, we will send out a product alert which would be extra time for you. However, these extensions happen every year for disasters (CA wildfires for example), and I am not aware of the IRS ever making a change to the dates for e-file or direct debit of the affected returns. You can find more information regarding disaster relief in this Help article

I will make sure to get this information passed along to the agent you spoke with, and apologize for any confusion.  Thanks for sharing! 

-Betty Jo 

[sjrcpa]

Can someone tell Olivia and the rest of the Support staff? This is not the first time that I've heard of support giving out bogus info.

[IntuitBettyJo]

Hi @sjrcpa 

I have provided the feedback, thanks for the bump. 

-Betty Jo 

[Jenhenheacpa]

Agreed!  I was told by support several weeks ago that an update for the June 15th federal disaster deadline was coming in an update soon!

[sjrcpa]

Apparently there is confusion about what is being updated. The due date that prints in the instructions is being updated. Ability to efile extensions and make extension payments and Q1 2021 estimates on June 15 is not going to be added.

[asitax15]

This is just ridiculous, Lacerte!!

[Jenhenheacpa]

👎

[IntuitBettyJo · Accepted solution]

Hi all! 

We just received the following information from the IRS regarding filing extensions with payments for taxpayers in the federally declared disaster areas. "For Tax Year 2020, taxpayers residing in federally declared disaster areas who require additional time to file beyond the extended deadline (6/15/2021), should file a Form 4868 by 5/17/2021 to obtain an extension up to 10/15/2021 to file. For both paper and electronic submissions, Form 4868 filing and accompanying payments must be submitted by the 5/17/2021 deadline."

Hope this helps clear it up; Product alert and News & Update post to come. 

-Betty Jo 

[PhoebeRoberts]

😳😳😳😳😳😳

Gonna be a lot of unhappy DIYer's getting paper-filed extensions rejected after 5/17, if that's the IRS's position. My guess is a lot of unhappy preparers, too - pretty much everyone I know figured that a paper-filed extension would work through 6/15.

[sjrcpa]

I did.

[IntuitJimmy1]

Thanks @IntuitBettyJo - the IRS does not generally update their schema and business rules for efiling for disaster declarations. These disaster declarations happen every year (i.e. California wildfires, tornados  in certain cities/counties, etc). This year just happens to be whole states that are affected. The IRS does not allow direct debit of payments after the original due date of the return (5/17 for this year for this purpose). The IRS handles all of these disaster declaration extensions on the backend by not calculating interest and penalties for returns filed in the affected zip codes if the return is filed and paid before the disaster due date (6/15 in this case). Lacerte has never updated the product for these disaster declarations due to the issues with the IRS efile business rules and schema.    

[Beno58]

I work with ProSeries with the same problem.  I was told that it was a ProSeries problem.  Not IRS problem.

[Beno58]

I have Proseries and was told that this issue was resolved.  It was not!  It is unacceptable that my clients need to pay using IRS online payment feature.  That's why they pay me, and that's why I pay Proseries! Bad business for Proseries.  I was told that this was repaired more than once by Proseries Representatives.

[sjrcpa]

They don't know WTH they are talking about, do they?

[KristinG]

Per above I believe the IRS had a different intention and extends the filing and payment deadline to 6/15/2021 with this notice:  https://www.irs.gov/newsroom/victims-of-texas-winter-storms-get-deadline-extensions-and-other-tax-re...

How do we get LaCerte to update the program to acknowledge the 6/15/2021 extension and payment deadline?

[CMH Advisors]

Please send the link to that updated language because that contradicts everything on the IRS webpage that says all due dates for returns are extended to 6/15.

[CBinTexas]

I agree.  I would really like to see that link to IRS-provided information regarding Texans having a 5/17 deadline for Form 4868.  Texas received the extension to 6/15 before the rest of the US received anything, and there are no references to the 5/17 date in any IRS information provided on their website in regards to Texas.  In fact, the IRS refers to all deadlines regarding Texas returns moving to 6/15.  That would also include the extension deadline. Please provide evidence to the contrary. 

[4XTex]

Please provide the IRS cite for this notice of early extension request for disaster relief areas.  I would expect a public notice of some kind has been issued.

[Leah4706]

I'm in Texas and tried e-filing my extensions yesterday.  Every single one got rejected saying I was trying to file an extension after the original due date - I assume it meant 4/15.  So now what?  Do I have to file every extension - about 300 of them - on paper?  Surely not considering what I pay for Lacerte!

[Leah4706]

I need to see this as well before I have to start preparing 300+ extensions on paper.  My e-file extensions are being rejected.  The diagnostic says I'm trying to file an extension after the original due date - I assume it's meaning 4/15/21.  Considering what we pay for Lacerte we shouldn't have to struggle with this.

[PhoebeRoberts]

1040 extensions? Mine (in Oklahoma) are going through just fine with no issues.

1041 and 1120 extensions had to be e-filed by 4/15; if not, you should file on paper.

Texas franchise tax, even before the snowstorm, had a 5/15 deadline so presumably is not the issue.

This is an IRS e-file schema issue; Intuit has zero control over what the IRS will accept for e-filing.

[Leah4706]

My Texas extensions are going through, but not my Federal.  I stopped trying after so many of my Partnership extensions were rejected.  The Disaster relief for Texas stated that any return due up through April 15th would be extended until June 15th, so any type of return SHOULD be able to be extended this week until October.

[PhoebeRoberts]

Yeah, you're not going to be able to e-file federal extensions for any entity returns with an original unextended due date, ignoring disaster declarations, prior to the e-filing date. Calendar year partnerships and S-corps had to be extended by 3/15 if you wanted to be able to e-file the extension. At this point, the only calendar-year extensions that can be e-filed are 1040s and 990s.

This is an IRS e-file schema issue, not an Intuit issue.

[asitax15]

Yeah, so we have to decide by May 17th if we THINK we will be able to complete returns by June 15th? So if we do not file extensions by May 17th but then get to June 10th and realize we can't get some returns completed in the next 5 days as we thought we could, then we are just screwed on those returns because we should have known in May that we would not be able to complete them?  This is all so dumb and yet sad on Lacerte's part. There have been plenty of disasters before - especially here in Louisiana - and I have never seen it like this. Ridiculous!!

[TWD9873]

Per BettyJo's post both paper and electronic submissions must be submitted by 5/17/2021.  Is this Lacerte's official position?  The inability to electronically submit an extension after 5/17/2021 may be explained by the IRS not updating its efile schema, but how does that affect the paper filing of an extension after 5/17/2021 through 6/15/2021? 

[PhoebeRoberts]

It's the IRS' official position, which they are communicating to tax software companies. I know someone who knows someone who works for a non-Intuit tax software company, and that person reports that the IRS is telling them the same thing. "[My] contact at the IRS said that they won’t accept extensions after 5/17 so if you cannot file by 6/15, you have to file your EXT by 5/17.  The End."

Why they can't clearly communicate that to the general public, I do not know.

[Beno58]

I just spoke with someone who uses Drake for tax prep.  She also indicated that they are not able to extend payment direct debit dates beyond May 17 for tax returns filed today for Texas residents.  So taxpayer can    1. pay now or on May 17    2. file now and pay with voucher mailed before June 15     3. pay with IRS.gov account    4. efile exactly on June 15.  This is my understanding of this issue now.

[rjskal]

That is totally contrary to their official declaration of tax relief that stated "...postpones various tax filing and payment deadlines that occurred starting on February 11. As a result, affected individuals and businesses will have until June 15, 2021, to file returns and pay any taxes that were originally due during this period. This includes 2020 individual and business returns normally due on April 15, as well as various 2020 business returns due on March 15.

[IntuitBettyJo]

Check out our News & Updates Posts in relation to How do I handle returns impacted by federally declared disaster zones? 

Lacerte: https://proconnect.intuit.com/community/lacerte-tax-news-updates/discussion/how-do-i-handle-returns-...

ProSeries: https://proconnect.intuit.com/community/proseries-tax-news-updates/discussion/how-do-i-handle-return...

ProConnect: https://proconnect.intuit.com/community/proconnect-tax-news-updates/discussion/how-do-i-handle-retur...

[tax456]

oh boy, Monday will be fun!

[Jenhenheacpa]

Working on mine now.  Thought I'd share -

To batch e-file extensions:

1. Click on the Clients tab.
2. Highlight the client files to e-file by holding down CTRL and clicking each client or click F3 to select them all.
3. Click on  E-File.
4. Click on  Start E-file Extension Wizard.

[tax456]

on another note, I did find that I am now able to put in a payment date past 5/17/21 AFTER I e-filed the extension.  I was not able to do so before the extension

[renee]

So are you telling me that the automatic extension for Texas etal thru 06/15/2021 cannot be extended through 10/15 if you did NOT file and extension on 05/17?  That seems a little crazy to me.  I did not know for many of my clients that they were not going to be able to file by 06/15/2021 and therefore had no reason at 05/17/2021 to even think about filing an extension to 10/15/2021.

I don't believe that this is correct.  So if you filed an extension on 05/17/2021 that got you through 10/15/2021.  But if you were thinking you could get the information you need by 06/15/2021 but were not able to, that you cannot then file an extension thru 10/15/2021.

This truly does not make any sense to me.  Please explain why those that filed extensions on 05/17 get to file on 10/15/2021, but those that tried to get their returns done by 06/15/2021 that did not file extensions on 05/17/2021 are just SOL?

Please let me know where you got this information and whom I can contact to better understand these rules for us Texans!

Sincerely

Renee