Tax payment withhdrawal date? Does it really matter?

[MikeGCPA]

Extensions processed with a payment of 4/15 had the tax pulled upon Efiling the extension?  Proseries support says the payment date is up to the IRS and the software does not control the date that the payment has been setup for????

How is that possible???

[Just-Lisa-Now-]

I've seen several people report this in TurboTax as well as a FB group, direct debit dates scheduled for 4/15 but are appearing in the bank accounts on the 13th.

[Just-Lisa-Now-]

I sent my own extensions in back over a week ago and scheduled for the 10th, they came out on the 10th.....must be these ones being sent in so close to the due date that are getting pulled early.

[garman22]

I agree. PS cant control that. If 04/15 is the chosen date, its out of our hands and PS'. Its on the IRS.

[MikeGCPA]

Thats ridiculous!  If the Authorization is the 15th then its the 15th not when the IRS feels like it and not because PS can't manage it.  This is a total disconnect.

[Just-Lisa-Now-]

I personally never schedule a direct debit for the 15th for anyone (just in case some glitch happens and it doesn't get withdrawn)...if they want to wait for the very last day, they can mail in a check.....I have trust issues with electronic transactions!

[garman22]

Can you explain why you feel PS must manage it? How is it on them when the IRS actually pulls? Or if you choose direct deposit and it comes in the mail (assuming all info is correct)......you believe PS should be responsible?

[Just-Lisa-Now-]

The software is merely a vehicle to send the information to IRS, just like the post office....if you had post dated a check and mailed it in, IRS wouldn't wait to cash it....IRS tends to follow the dates requested, Im guessing these last minute payments they are authorizing early to be sure they clear on the 15th.

[MikeGCPA]

Lisa its apparent that you are not an experienced tax preparer

[Just-Lisa-Now-]

I guess not  :joy:

[MikeGCPA]

And garman its an authorization.  You put the date in to withdraw the funds in many places.  If the date dosnt matter and its arbitrary then why are returns and or extension payments required to be made by the 15th?  Its the software that authorizes the debit thats why its called an authorization and thats why there is a date for the payment.  Its not a free for all

[Just-Lisa-Now-]

I think your beef is with IRS and their withdrawal practices.

[MikeGCPA]

And please dont apologize for PS the software is supposed to work

[MikeGCPA]

and they  are not last minute payments these are setup dates days ago

[Just-Lisa-Now-]

scheduled for the last day is what I was referring to.....the payment is only shown as pending in the bank account right?  It wont go through until Monday, so you can still make a deposit on Monday to cover it if the account doesn't have the funds, right?

[MikeGCPA]

Nope the funds have been pulled

[MikeGCPA]

Yes if you file today and tomorrow they wont take the funds till Monday but thats not how it is supposed to work

[Just-Lisa-Now-]

Interesting......Since its a weekend, transactions are usually held as pending until the next business day.

[MikeGCPA]

Of course.  This is a disconnect.  The date you select for payment is the date.  Not the date the IRS feels like taking the funds.  After the 15th that happens but not before.

[garman22]

Basically you want ProSeries to monitor ALL of the dates chosen and deny IRS to take out early if they do?

Sorry, Mike, you sound like the inexperienced one here.

[Just-Lisa-Now-]

This is an IRS issue, not the software....the software just sends the information to the tax agencies.

[MikeGCPA]

The IRS should honor the ACH request or it should stay in cue.  I have not seen this before therefore I felt it to be a PS issue.  I have not heard this happening with other software as we deploy other software for returns PS does not handle.  Its a concern.  

[garman22]

I have never heard or seen it either. My first response is to question PS as you have done. For the first time in my career, I question the software first what with all their issues these past 2 years.

I wont say you are 100% wrong now but...... @Ashley at Intuit (aka Henry Jr) @Kathi_at_Intuit @Charlene_At_Intuit .......I dont know what to expect here from you. Could you shed any light on this subject? Something from you guys could go a long way.  I have not experienced this (at least no client has reached out to me) but from FB and here now, more and more bring this up.  

[Just-Lisa-Now-]

Someone else said the IRS website says it can happen earlier than you have scheduled

https://accountants-community.intuit.com/questions/1838170-i-have-a-upset-client-because-i-scheduled...

[Kathi_at_Intuit]

@garman22 I will have to check on this. I can speak for Lacerte however, I will have to check on ProSeries. For Lacerte, we are able to see the electronic copy of the e-file. In this, it would show the date that the monies would be withdrawn from the account, but as @Just £isa Now! said we are the vehicle for getting the information to the IRS and after that, we have no record if it was taken/not taken and when. If we send the payment date as 4/15 and it is taken earlier, you would have to speak to the IRS about this. I will get back to you all about ProSeries.

[Kathi_at_Intuit]

I have checked on ProSeries and they do not see the electronic copy of the e-file like we do in Lacerte, however if the date in the return was 4/15, this would be what ProSeries sent to the IRS. I would contact the IRS about the payment https://www.irs.gov/payments/pay-taxes-by-electronic-funds-withdrawal

[rbynaker · Accepted solution]

Wow, two in a row.  I stopped scheduling EFT with extensions since IRS Direct Pay came along.  I make the clients do it directly with the IRS.  Then they have control over it (and it's not "my fault" if something goes wrong).

Rick