Collect Fees

[Kev-in-CT]

I'd appreciate if the software that the ability to allow me to pull our fee from our clients' bank accounts when the tax return is complete, with the client's permission. The bank account info is already entered and clients would appreciate it, too.

Even better would be to sync it with QBO so it takes it out of A/R automatically.

Thank you.

[abctax55]

I'm not sure it's the software that is the issue.  Research what the IRS has to say about it.

[Kev-in-CT]

I don't know. This feature is available within QuickBooks Online, and in fact, I use it frequently. Not sure why it wouldn't work with this. It would be much easier as well, because we enter our clients' banking information already. It's an extra step in QBO.

[sjrcpa]

In QBO it's a bill paying function.

Tax return prep is a different animal. As Anna said, check the IRS rules.

[puravidapto]

I believe the "auto checkout" idea is another way to solve the problem. Client needs to pay before they can file. I do not understand why this is an IRS issue, is between us and the client with the software as the means to get it done. Please vote FOR the idea.

[Terry53029]

I'm not sure if the IRS cares if we take our fees from clients bank account. The rule in Section 230 states that we cannot have a clients refund check from IRS deposited into our bank account. Here is from section 230

§ 10.31 Negotiation of taxpayer checks.

(a) A practitioner may not endorse or otherwise
negotiate any check (including directing or accepting
payment by any means, electronic or otherwise, into
an account owned or controlled by the practitioner or
any firm or other entity with whom the practitioner
is associated) issued to a client by the government in
respect of a Federal tax liability.
(b) Effective/applicability date. This section is
applicable beginning June 12, 2014.

[Anonymous]

Thanks for the idea. We are changing the status to "Open for voting" since it is no longer considered "New". If you have any questions on the life cycle of an idea, check out our Idea Getting Started Guide for more information.

[The-Tax-Lady]

It's against the IRS Circular 230 regulations for the tax preparer to directly receive any portion of the taxpayer's refund for payment of the tax prep fee. The taxpayer cannot authorize this payment to be made to the preparer, unless a Third Party, Bank Product has been selected thru the software to process the refund.

What are we opening up for a vote, violating the 230 regulations?

[puravidapto]

The-Tax-Lady 

Please illustrate where the 230 regulations are violated? The original poster did not ask the refund or any portion of it to be credited to the preparer, but the bank account to be debited. 

[The-Tax-Lady]

The 230 regulation is explained in Terry53029's reply above.

I understand the poster just wants an easy, no additional cost, method of collecting the prep fee. Don't we all. However the banking industry controls that type of transaction, Direct Debit from a bank account.

If Intuit decided to implement this option, it would probably be farmed out to a third party provider and cost a ridiculous annual amount on top of the software.

Most banks have a free, on-line method of paying anyone from the customer's account, electronically or by mailed check. I have several clients pay me directly from their bank accounts.

Best method, get paid before you file the return, use a Bank Product if you're in doubt the client will pay.