Estimated Tax Payment due 7/15/2020

[AMChertoff]

I filed the estimated tax payment due 7/15/2020 as instructed by ProSeries Professional.  Has anyone else experienced the same thing or do you know that the IRS is delayed on their end?

[Just-Lisa-Now-]

You checked the box on the 1040ES worksheet to have the ES payment auto debited on the tax return when you filed it?

[AMChertoff]

Yes, and the log shows the 1st estimated tax as accepted.  I never had this problem in the past.

[MWynn]

I filed my personal return on 7/14 with the payments for the federal tax payment and 2020 estimated tax payment to be debited on 7/15 and they just posted in my bank account at some point today (some time between when I checked it at 6:00 am and now). I assume this was just a processing delay by the IRS. 

[AMChertoff]

I just checked my account and no pending items.  I'll just have to call the IRS tomorrow.

[AMChertoff · Accepted solution]

The issue has been resolved.  Tax returns that went through okay for the federal estimated taxes did not have either of the Direct Deposit Yes/No boxes checked.  The problem occurred were the No box was checked.  I would suggest that you review your clients and confirm that their estimated taxes were paid.

[Just-Lisa-Now-]

removed, I misread.

[djr9649]

I have two returns which were efiled and accepted on July 8th.

Any balances due on the returns were debited on 7/15.

However, the 1st Q Federal estimated payments have not been charged to the taxpayers' bank accounts as of this evening. The box for electronic payment of the estimated tax was checked and the taxpayer cover letter also confirms this. Anybody else have this problem?

[AMChertoff]

You have two choices since the system didn't process the estimated taxes correctly.  First choice have them send in the payment with a 1st Estimate payment voucher.  Add a note of explaination that ProSeries did not handle the estimated taxes correctly.  The second is if you have EFTPS set up as a CPA and have individual user accounts and send in the 1st Qtr and all future quarters.  That's what I had to do for my personal taxes.

[Just-Lisa-Now-]

or use IRS DirectPay

[djr9649]

Thanks

[djr9649]

Thanks for your response. I was trying to find out if this was a software issue and if it affected future estimated payments. I have subsequently talk to Support and have confirmed that it was a glitch in the program but it only affected the 1st Q payment.

[Frustrated-in-IL]

I have discovered this problem today with at least two clients and the answers I have received so far from ProSeries are just not satisfactory.  I spend over $6000 a year for this program and I expect it to work.  Now I have clients whose estimated payment did not come out as indicated within the program.  ProSeries now admits there was a problem but according to a support representative, there is nothing to worry about since the record indicates the taxpayer tried to make the payment in a timely manner.   Yet, the EFTPS people have ABSOLUTELY NO RECORD of any attempt to make an estimated payment for the two taxpayers I checked with them about.  EFTPS specifically told me the only explanation is a transmission problem on Intuit's end.  Maybe that is the case or not.  But what I want to know is this.  Will Intuit cover the underpayment penalties incurred by my clients because their program isn't working properly?

[Just-Lisa-Now-]

How much penalty will it be for an estimated payment made a couple weeks late in 2020?

[djr9649]

I was informed by Tech support that Intuit would respond to my question about the penalty in 24-48 hours. So far I haven’t heard anything. The penalty currently is 5% of the underpayment.

[Just-Lisa-Now-]

If you had a $10,000 estimated payment that was paid 10 days late, you wont be paying a $500 (5%) penalty on it.

If its not showing up as being scheduled on the EFW automated phone system, just get it paid by some other method as soon as you can, Intuit wont be able to force this payment through for you.

[djr9649]

5% is the annual rate. You would only owe interest for 10 days.

[AMChertoff]

Yes Intuit will not be able to make this payment and we're responsible to our tax clients.  Another method will have to be chosen for the July 15th payment.  Does anyone know if they will correct the program for the Sept 2020 and January 2021 payments? 

[Just-Lisa-Now-]

I called on on numerous ones of mine to verify the scheduled payments, all of them had 3rd and 4th quarter scheduled as requested.

[Frustrated-in-IL]

So I should just shrug my shoulders and say okay client, pay the penalty?  And if the client complains, pay it myself?  How is the community going to handle this with their clients?

[djr9649]

I may be naive but I am hoping Intuit will step up and do the right thing. If they don’t cover this penalty I will be very disappointed. I only have two individuals affected by this software issue but one of the penalties could be in excess of $1,000. The clients should not have to pay this penalty so if Intuit doesn’t reimburse us or the IRS won’t waive the charges it looks like we will have to pay the fees.

[AMChertoff]

If the 1st Qtr's estimated taxes were paid, sure the 3rd and 4th will also be paid?  When I called the IRS and checked the EFTPS account nothing was set up be the 3rd and 4th.

So, I'll ask again what is Intuit doing about this?

[AMChertoff]

I would suggest for everyone with an issue they should contact customer support via email and see what Intuit is planning to do.

[djr9649]

Yesterday I sent a message to :

[email address removed]

as mentioned in their Critical Response message regarding this problem.

Still waiting for a reply.

As mentioned by AMChertoff I would advise everyone else do the same.

[djr9649]

For some reason it will not let me post the Intuit email address. (Software Error)

Check your alerts tab in the software for their Critical Response.