PENAlTIES due to 1040ES Error?

[Aledwedge]

Can't seem to find an answer, only that Proseries has recommend we have our clients call IRS to adjust ES payment #2 and do ES payment #1 online at IRS Direct Pay.... (yea, totally see my 84 year old client doing this)

So my questions are: (1) is Proseries reimbursing these clients for the penalties and (2) Who is reimbursing me for my time to have to go search who was impacted by this error and then contacting them to try and explain.   CURIOUS, WHAT IS EVERYONE ELSE'S PLAN ON THIS?  

#FrustratedTaxPreparer  #covidsucks

[BobKamman]

Where is ProSeries recommending that?

[wjgutcpa]

Unreal. Their programmers copied last year's ES payment deadlines into this year. PPM. And we have to pay the price AGAIN. But hey, renewal of ProSeries for the 2021 program is open!

NOT! This further demonstrates what Intuit invests in. And it's not programmers for the professional products.

[IRonMaN]

Bob:

Solved: Re: 1040-ES payments not being withdrawn - Intuit Accountants Community

[Aledwedge]

Solved: Re: 1040-ES payments not being withdrawn - Intuit Accountants Community

SHOULDN'T have the word solved in it, that is for sure! 

[IRonMaN]

Intuit had a repayment system put in place but unfortunately due to a programming error, the reimbursements won't be credited to your account until April 28, 3021.

[BobKamman]

So BFD.  Your $10,000 payment delayed 2 months results in a $25 penalty.  But if your estimates are correct otherwise, that's not enough for IRS to notice.  Gives the moneychangers in the tax office something to fuss about, though.   

[Liesal]

any mention to state withdrawals?

what a mess

[wjgutcpa]

Bob, it is a BFD. The last four years, minimum, I have had to explain to clients that there were software issues with my very expensive high end software that will delay me timely getting their return to them. All the while Intuit is running their advertising for FREE, FREE, FREE software. My client's wonder why this FREE product is ready but not mine, the professional product. Then Intuit expects us to pay 9 months before the product is even available for a less than 10% discount on buggy software. Those bugs have to be discovered by the users, making us beta testers for them during our busy time, at no cost to Intuit. I have had farmers' returns due on 3/1 and after being notified of said bugs, they determine in all their brilliance to have the fix ready by 3/3 AND there is no said workaround to assist one to meet the 3/1 deadline.

In 33 years at this game, I have yet to meet a client that is impressed or jumps for joy with getting an IRS notice. 

Four years of finding bugs and waiting for fixes, I should of switched and I would have spent less or the same time converting and learning the new software. Fudge, that says a lot about my stubbornness. 

[PATAX]

👍 WJ, it was not stubbornness that prevented you from switching, but the fact that you realize like others that there are pitfalls in switching software including worrying about carryovers and other data being successfully carried over, i.e. converted, from the old software to the new software... And it would be very time consuming to check every client to make sure of that... Also there is also a learning curve with new software and you have already learned all the ins and outs and shortcuts for the Pro Series software. Good luck my friend... Just my opinion

[Aledwedge]

Interesting - just saw this in my email as well.  So really whos fault doesn't matter, its the what to do about and what to tell clients and who has time to tell clients..  yes past few years makes me reconsider being in this job, because to the clients it is always our fault! 

SPIDELL

Tax • Analysis • Education

IRS processing delays for April electronic debits (04-21-21)

The IRS has stated that they are behind in withdrawing funds for first quarter estimated tax and extension payments made through auto withdrawals on or around April 15. This is why many practitioners have been notified by their clients that April payments have not been withdrawn from their accounts though the payments were properly scheduled. According to the IRS, this is not a tax software issue. It is the IRS who has been delayed in making the withdrawals from taxpayers’ accounts, and they are making the issue a priority. The problem is not just estimated taxes but all auto withdrawals made on or around April 15.

According to the IRS, there will not be any penalties for these late withdrawals, and no action is required by the taxpayers. The IRS is expected to release a Quick Alert on this topic soon.

[PATAX]

Thanks for the information... I wonder if the IRS is overworked and understaffed due to taking care of the economic impact payments ...Just wondering and just my opinion

[BobKamman]

As Lee Iacocca would say, if you can find a better software, buy it.  

[Liesal]

i suspect many of us feel this way./. A gotcha moment...  i was quite annoyed to find my quote  for next year in  my email but then as always when i go looking for it in my dashboard its buried so i never did find it.  

[TxLaine]

When my clients who have been affected by this issue have called the e-file Payment Services phone number that Intuit gave us, they have been told that either a) there is no record of any scheduled quarterly electronic payments for their account, or b) that only a quarter three and quarter four payment showed in their system, but nothing for either quarter one or quarter two.

In both cases these are clients for whom I'd selected to have all four quarters electronically withdrawn.

Is anyone else hearing back from clients who have tried to call the number to have the Q2 amount cancelled and rescheduled?

What a nightmare. Definitely considering changing jobs or changing software providers for 2022...seems like the amount of time wasted this season could have been better spent learning a new software program with better customer service and better software functionality.

[qbteachmt]

"As Lee Iacocca would say, if you can find a better software, buy it."

The year of this marketing slogan, he was selling a Mitsubishi Truck putting the Dodge badge on it (D50/W50); Lee was a bad example. "Do what I say, not what I do."

[BobKamman]

https://proconnect.intuit.com/community/tax-talk/discussion/this-didn-t-happen-when-fill-in-the-blan...

[wjgutcpa]

Liesal, You have to go to account management and click the renew now link. You can back out without renewing.