Is direct deposit information submitted to IRS even if taxpayer owes and does not elect electronic payment?

[IRonMaN]

No, the IRS computers do not work by osmosis.

[cpajt1]

Not exactly trying to submit through osmosis...my question is more directed as to whether or not data entered into the program is transmitted whether it is needed or not.  If a client has direct deposit information entered into their return and this year decided to apply the refund forward, does Proseries still submit that information or....is it only transmitted if the box is checked for direct deposit or electronic payment.

[IRonMaN]

But you are trying to do it through osmosis.  If the banking information isn't any part of the actual return being filed, it isn't going to get into the IRS system.

[cpajt1]

I will try and be a little more clear for others who may be able to answer the more technical side of this question.  The current guidance at irs.gov instructs taxpayers who have not filed their 2019 tax returns to enter direct deposit information into their tax return before they electronically file in an effort to enable them to get their stimulus checks more quickly.  Does anyone know if proseries is going to allow for us to submit that information whether it is required or not?

[IRonMaN · Accepted solution]

The answer is no.  The only way it is going to appear in the IRS system is if you have a balance due paid electronically or you have a direct deposit being made.

[hillsboro15269]

My understanding is that because of this stimulus going on, if you file, even if you don't have a refund, and put your Direct Deposit information on your return, they will be harvesting that information.

They (the IRS ... see their COVID announcement from like 2 days ago) are telling people to file a simple no-tax-due return in order to get their bank information to the IRS. I don't know why they would say that if that's not how they're getting that information.

Under normal circumstances, I would agree that if you don't have a refund or use the EFT to pay a balance, the IRS doesn't get your bank information. But we are NOT living under normal circumstances right now. 

Not that I would recognize normal if it hit me in the face.... 😄 

[Confucius]

So we have a problem. The IRS is telling us to file no tax due tax returns for those receiving social security or other non taxable income and who would ordinarily not file in order to get this stimulus check and to provide the banking information on said return, yet this program is NOT forwarding the banking information to the IRS even though it was input into the information page. And please don't mention osmosis again because that is redundant. The program should put the banking information on the tax return whether they are getting a refund by direct deposit, paying by direct debit or by check or have a zero tax return because that is what the IRS is telling us to do. No osmosis necessary rewrite the program.

[hillsboro15269]

I just filed a return with $5 interest income, $0 balance / $0 refund and it went through fine, including Direct Deposit information. Obviously, I can't say whether the IRS successfully harvested that information. But she filed specifically in response to the IRS request, so....

[Todd Pinchevsky]

I did two of those today for that exact reason. Was assuming the bank info got transmitted.

[rbynaker]

Obviously this info is out there somewhere.  Can Anyone Report an Excellent Source?  Where are you hearing this info?

What gets transmitted with the efile is similar to what would get reported on a paper return.  You would only include the bank info on the paper form if you were getting a refund.

The IRS is planning to have a website where folks can enter/update their info for direct deposit.  Details will be forthcoming but it was mentioned in this information release:

https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

The IRS does not have my direct deposit information. What can I do?

In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

[skeramidas]

I agree--maybe there is a way to force direct deposit information. There will be a portal on the irs site to do "simple returns" whatever that means and submit your direct deposit information. All these announcements are made to people, but their website isn't ready to accommodate the taxpayer.

[Confucius]

Yes it will file ok but the bank information doesn't go with it because no tax or refund due using your bank account. Print the 1040 of that return you filed and look at the bank information, it will be all X's and no bank info such as name or check off checking or savings. Look at a client that actually has a direct deposit or debit and you will see the bank info on the 1040.

[Confucius]

I heard today but have not seen anything officially that the IRS will deliver these payments to those on SS in the same manner as there SS using SS information. Still looking for official word on that though.

[skeramidas]

Just released from NATP: "As of last night, the U.S. Department of the Treasury and the IRS announced that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive the economic impact payment. Instead, payments will be automatically deposited into their bank accounts. The IRS will use information from the Form SSA-1099 and Form RRB-1099, and receipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits. Please note, since the IRS would not have information regarding any dependents for these people unless they filed a tax return, each person would receive $1,200 per person, without the additional amount for any dependents. First timulus payments expected to go out week of April 13." The article goes on with lots more information that is very helpful, but I can't type the whole article (6 pages).

[hillsboro15269]

Confucius: Do you have evidence or proof that the software is NOT transmitting that information to the IRS? If it's entered into the correct place in the software, it SHOULD be sent to the IRS. I see no reason to believe it isn't, unless you've heard otherwise -- straight from IRS and/or Intuit. And if you've heard anything from IRS in the last few days, I'd be impressed. They aren't answering any phone calls from me!

rbynaker: In that same document you linked, just a few lines down: 

"The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return."

The first several times I read that, I thought it said "anyone WITHOUT a tax filing obligation..." I have no idea how I misread it so many times, or maybe it did say that 2 days ago and they changed it (both are equally possible and plausible).

Either way, this seems to suggest and imply that even if you owe taxes or have a no balance / no refund return, you should include your direct deposit bank information on your return so you can get that stimulus payment. What else would, "Taxpayers should include direct deposit banking information on the return" mean?

(Not that the IRS is never guilty of mistakes or misleading information....)

[IRonMaN]

It means if you have a refund, include the direct deposit information.  There is a lot of information included in your client file, but just because it is there, doesn't mean that the IRS scoops up the info when the return is transmitted.

[Confucius]

Hillsboro 15269

My client noticed it on the printed return I gave him. All the bank info was blank even though I input it on the information page. I checked other returns with direct deposit and direct debit, the bank info was there so I don't think bank info transmits on a zero tax due return. However this is all a moot point now as the IRS is going to pay that group of people from their social security accounts with no return needed.

[KScpa211]

What if we put $1.00 for taxes withheld and request refund? It's immaterial and the IRS will have bank info.

[IRonMaN]

I never realized the IRS had a materiality level for fraudulently filed returns

[Grandmaster]

One other way to provide direct deposit information to the IRS would be to complete a form 9465 Installment Agreement Request.

[lmasseycpa]

But why not make it 6' 3.14"  That seems to make more sense to me...??

If you have a payment made directly from the Lacerte system, does the payment info get transferred to the IRS...?

Larry Massey, CPA

Folsom, CA

[abctax55]

That's what I suggested to Jeff a month ago...

No - if you are referring to DD info for the stimulus payment.

[IRonMaN]

Because I’m not very good with numbers 

[Todd Pinchevsky]

Definitely not. A clients daughter I filed with zero due or refunded, but included her banking info, just got a check.

[CENGLISH10]

So first the economic impact portal "Get my payment" said they didn't have enough information, then later they said I was giving them the wrong information.  Neither should be true. 

My husband and I have a small business together, but he is mostly retired and is receiving Social Security and I was working as an independent contractor in 2017, 2018, 2019, but not now in 2020.  

In 2017 and 2018, because of miscalculation Covered California, we owed about $1000 each year and filed a Form 9465  for both of those years.  This had our direct deposit on it.  

I haven't wanted to file 2019 taxes because not sure about Covered California, and also felt it might confuse stimulus check because my status with my company changed again.  

So-- is it because he is Social Security and I am mostly working?  Or just because we're married? Is it because the IRS doesn't look at Form 9465 for information for stimulus, only for exacting payment?  Should I have filed 2019 taxes?  Probably would have had same situation as 2018, so I don't see how that might have helped.  These were all filed electronically.

[CENGLISH10]

As far as I can tell, they are not harvesting from Form 9465 or my husband and I would have received our stimulus checks. 

We don't make a lot together, he has social security and sometimes sells a piece of art, and I was independent contractor in 2017, 2018, and 2019, so Covered California miscalculations (in both 2017 and 2018) had us owing about $1k per year, which we were able to get on payment plan. 

They definitely have our direct deposit from there, as they make sure they get their payment, but we should have had both our checks by now if they were utilizing Form 9465 info.

[CENGLISH10]

Have you filed anyone with Form 9465 in 2018 or 2019 that got their stimulus check?

[abctax55]

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

[Grandmaster]

No and in hindsight it was a bad suggestion by me to use form 9465, as the IRS is not processing paper forms right now.

Use the IRS's Get my Payment Tool in order to provide your direct deposit information or track your stimulus payment: https://www.irs.gov/coronavirus/get-my-payment

[CENGLISH10]

lol, right?  the portal is broken at least for me and my husband. and I filed form 9465 in 2018 electronically with my 1040.  so no.

[CENGLISH10]

Ironically, my husband (who is on Social Security retirement) and I filed jointly, electronically for 2018.  So sadly, he would have already had his Social Security if he had filed separately.  Hoo boy.  We also are on a payment plan Form 9465 filed electronically, but apparently they don't both with Form 9465.  Boy the brain trust in charge of this operation!

[CENGLISH10]

The heading says its solved.  It's not solved.  It's a complete disaster.  It seems like it would be easy to build that dinky portal, but no.

[CENGLISH10]

Is Form 9465 not part of what is being filed with the 1040?

[qbteachmt]

@CENGLISH10 

"Is Form 9465 not part of what is being filed with the 1040?"

You are confusing a Payment account with a Direct Deposit account. The news tells us that if a person gets their regular Social Security by Direct Deposit, there is nothing else you needed to do at all.

How many times will you need to see that you are in the wrong place on the internet?

Re-direction links for the General Public that accidentally stumbled into this community...

https://ttlc.intuit.com/community/other-financial-discussions/discussion/02/216

https://ttlc.intuit.com/community/other-financial-discussions/discussion/covid-19-coronavirus-person...

https://ttlc.intuit.com/community/after-you-file/discussion/02/203

You're welcome.

And really, you folks should reconsider how safe it is that you are just signing up for usernames all over the web. You don't have licenses for Intuit products, so you are not really a user of the programs in this forum, yet you want to make user accounts here? That just is not Safe, along with, this is Not the resource you seek.