IRS Direct Pay

[fred7777]

Where do I enter IRS Direct Pay amounts for tax year 2024?  There is a large balance due and no estimated payments were made. ProSeries shows the calculated Line 38 penalty amount but this should be reduced for the two Direct Pays that were made about a month ago.

[IRonMaN]

Why aren't they estimates?

[qbteachmt]

Direct Pay is a process. This is the banking.

Estimates is the Reason. They paid estimates via Direct Pay, apparently.

[dkh · Accepted solution]

Enter the payments on the same worksheet you enter Estimates

Are saying the payments aren't estimates because it was after date estimate was required and IRS wouldn't allow you to choose "estimate" as the reason for payment ?  

[rbynaker]

This was an issue that was brought up at my area stakeholder liaison monthly meeting.  The system doesn't allow ES payments for 2024 anymore (even though some folks in disaster areas still have time to make them timely).  The only viable options are extension payment and balance due payment.  Extension payments have a line on the tax return (Sch 3 Line 10).  Balance due payments do not.  Some folks suggested putting the payment on Sch 3 Line 13z.

I think entering the payments as an estimate is as good as anything else but there might be a matching notice later.  I had a client in this situation and told him to just mail the payment with the ES voucher.  We'll see if that works. <shrug>

Rick

[Just-Lisa-Now-]

"I had a client in this situation and told him to just mail the payment with the ES voucher."

Hopefully they dont credit it as a first qtr 2025 estimate!

[fred7777]

I am original poster. Thank you all for replying.

I ended up entering the actual date paid and amount paid to the Tax Payments Worksheet. I did not fill fill out an 1040-ES form. This correctly reduced the "amount owed" on Line 37 and the Estimated Tax Penalty amount on Line 38.So all is good. Thanks again.

[qbteachmt]

1040-ES is a voucher to send in with payments, because it has the taxpayer info and the tax type (1040) and the tax period identified. When you pay online, you select that info and provide that info. You can use it to give to the taxpayer to prompt them to make the next payments. It isn't a tax form that is part of the 1040 return. It's informative.