Level 15

Solved

Form 1040 - $1 balance due

Forum|Forum|4 years ago
March 26, 2022
6 replies
14 views

WTF.... I can't ever remember this happening...... do I tell them to pay ?

client only has W2 so can't round up/down to eliminate this

ProSeries Professional

This topic has been closed for replies.

Best answer by dascpa

Somewhere it says $1 or less (some people still deal in cents) is not required to be paid or refunded. I've had many and always tell them to pay the $1 if owed. Most get a kick out of that the postage and envelope cost as much as the balance due.

Just-Lisa-Now-

Intuit Community Champion

I have one with a $1 refund.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

dascpaAnswer

Level 11

Somewhere it says $1 or less (some people still deal in cents) is not required to be paid or refunded. I've had many and always tell them to pay the $1 if owed. Most get a kick out of that the postage and envelope cost as much as the balance due.

dkhAuthor

Level 15

Yes, IRS says don't have to pay if less than $1 but can't do cents on the tax return so possibly could be less than $1. Just wonder if IRS will send notice if taxpayer doesn't pay.

IRonMaN

Level 15

You have the perfect return! Owing one dollar is what everyone should be shooting for. Take a picture of the return (maybe even have the clients stand next to the return) to show when folks come to you they get perfect tax planning. 😀

Slava Ukraini!

dkhAuthor

Level 15

Interestingly enough, client had note in with W2 they want to discuss changing W4. 2020 client owed over $600......guess I'll have to try to convince them it is a perfect return.

rbynaker

Level 13

I had a $0 once (and not because tax was $0!) I've had a few $1 on the state returns.

Theoretically this is a function of the "new and improved" W-4 process. It's designed to hit $0 rather than result in a refund.

IRonMaN

Level 15

Yeah, I hit a zero return about 10 years ago. I've had a few $1 returns over the years.

Slava Ukraini!

BobKamman

Level 15

IRS writes off any balance due under $5. In the old days I would tell you to file the return with a check, because then you would know they got the return when they cashed the check. These days, not even that works.

PATAX

Level 12

@dkh @Do yourself a favor and have the client pay the $1. I always do that for both federal and state. If not there is a possibility that the client could receive a notice and then you may hear from the PIA...

BobKamman

Level 15

Or you could pay the $1 yourself if you're really afraid of hearing from the client about an IRS notice. Of course, that would not have worked last year when the checks were being cashed by the banks-for-hire but the returns were not being processed once they were shipped to IRS. Would have been better to send the return directly to the Service Center.

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