Tax Liability Pmt applied to Spouse SSN not TP

[chasecpas]

In a joint tax return for tax year 2018, the tax liability payments submitted with the extension (F4868) and the tax return (F1040) were applied to the spouse's ("SP") SSN and not the taxpayer's ("TP") SSN per a conversation with the Dept. of Treasury.  It was a MFJ eFile tax return. No "splitting" done other than TSJ indicators on Schedule A, where applicable. Both the TP & SP hold joint and individual bank accounts. The 2018 tax payments were made from the spouse's individual bank account.

The TP and SP discovered this year (2020), via IRS Notices, that payment was not received for tax year 2018. The married couple was penalized.

Question1: Is anyone else aware of this experience for tax year 2018 for a MFJ eFile tax return?

Question2: Does ProSeries Professional software include a toggle of sorts to indicate whether a tax payment is being paid by the TP or SP? (Not sure why this would be relevant in a joint tax return but I ask nonetheless.)

Question3: If so, how does one disengage this feature? If not, then could my experience be a fluke or a hiccup with the IRS (self-professed) antiquated platform for MFJ eFiled tax returns (for TY 2018)? This event has caused frustration to say the least. The IRS pointed me back to my tax software. No surprise. My tax software pointed me to the IRS. No surprise.

Thanks!

[Just-Lisa-Now- · Accepted solution]

Weird.  On an MFJ return there is no option or toggle to make this occur.  Sounds like something happened when the payments came from the spouses individual account, but I have clients that do that often (hell, I do that on my MFJ return and my separate account makes payment), its never been an issue.  Im sure youve verified that the return isnt accidentally marked MFS. 

The IRS  got the money on time, I would dispute any penalties sending proof of payment along with a copy of the joint return.

[Just-Lisa-Now-]

Wait, did spouse make the payment at IRS DirectPay or did you make the electronic payment when the extension was filed?  If spouse made payment, they may very well have selected the wrong thing.

[Just-Lisa-Now-]

Or if spouse mailed a check in with an extension and put her SSN on the check and the data entry clerk didnt look at the extension, it could have been entered incorrectly into the system.

[George4Tacks]

Question1: It has happened for years. It is an IRS problem.
Question 2: No
Question 3:Is Question1.

[Just-Lisa-Now-]

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@George4Tacks wrote:
Question1: It has happened for years. It is an IRS problem.

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Youve had this happen before?  Interesting.   

[chasecpas]

Thanks Just-Lisa-Now-

Will contest.

[chasecpas]

Payments made when extension and tax return were eFiled, respectively, via the ProSeries software. IRS Direct Pay not used.

[chasecpas]

Thanks for reply. IRS malfunction. Got it.