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New client just paper filed 2016 with a refund applied to 2017 estimated tax. Do I need to wait until 2016 processes to e-file 2017 and 2018?
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No, but you may get a notice for 2017 regarding the payments-i.e. the amount applied from 2016 may take a while to show up in the system.
FYI-you won't be able to efile 2017 and 2018 until January 2020. The efile system is shut down now.
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