When did IRS start treating online indiv ext payments

Technical topics regarding tax preparation.
#1
Posts:
886
Joined:
26-Feb-2016 10:14pm
Location:
Oakland CA
as 4868's ?
 

#2
makbo  
Posts:
6840
Joined:
23-Apr-2014 3:44pm
Location:
In The Counting House
The first tax year that Form 4868 instructions referred to this was 2008: "You can apply for an extension by paying part or all of your estimate of tax due by credit card. [...] Do not file a paper Form 4868."

As far back as 2007, IRS accepted payments by credit/debit card, either through a web site or by phone, but you still had to file Form 4868. My research goes back no further because I'd have to go to the IRS web site, and opening up each year's PDF that way would be too tedious.

In 2013 was the first time this language appeared: "You do not need to submit a paper Form 4868 if you file it with a payment using our electronic payment options. Your extension will be automatically processed when you pay part or all of your estimated income tax electronically. You can pay online or by phone (see page 3)."

The 2013 instructions refer to the credit/debit card option (which includes a cash-advance a.k.a. convenience fee), but also mentions for the first time needing to enroll in EFTPS to make payments other than by paper check or credit/debit.

Direct pay, which requires neither EFTPS enrollment nor credit/debit card, was first mentioned one year later in 2014.
 

#3
Posts:
886
Joined:
26-Feb-2016 10:14pm
Location:
Oakland CA
Am I perjuring myself if i make a payment on behalf of a client using their name but my bank account?

if ok and i had known that direct pay automatically created a 4868, I'd have made the minimum payment, not obvious what that is, for a bunch of no tax due little clients using Direct PAY, instead of crawling along with Go System on April 15th. CA FTB lets anyone pay anyone's tax on their direct pay site. Which I always thought was wierd.
 

#4
EADave  
Posts:
1427
Joined:
22-Apr-2014 9:25pm
Location:
Texas
I’d say that’s a completed gift Len, or compensation to the client, unless they reimburse you I suppose. Thank you Makbo for the snippet of the 4868 instructions I’ve never reviewed before. I had a new client recently make a direct debit using IRS Direct Pay, but technically no 4868 was filed in conjunction with the payment.

Apparently, the payment is tantamount to filing the extension? This could be very helpful for my new client.
 

#5
Posts:
886
Joined:
26-Feb-2016 10:14pm
Location:
Oakland CA
EADave, I show the tax paid as an item on the bill and get reimbursed. I carry "reimbursed client costs" as cash basis short term asset on my QBO b/s. until reimbursement received.

But question remains: does the IRS only allow the taxpayer to pay for the taxpayer via that site? Unlike many states including CA which only require the payer to identify themselves.
 

#6
EADave  
Posts:
1427
Joined:
22-Apr-2014 9:25pm
Location:
Texas
It depends on what your definition of "allow" is. Reminds me of an impeachment hearing discussing the definition of "is". Anyway, the IRS Direct Pay website requires the taxpayer to go through a page of identity questions, questions you and I can answer on behalf of the taxpayer (what was your address for one of your previous 5 tax returns, for example).

I've sat with a client (over the phone) and whilst in my office, going through the screen prompts on IRS Direct Pay and the IRS never knew it was merely me punching in several key strokes.

It's a good question. I've never tried to enter my account number, or an account number belonging to someone other than the taxpayer, but I would forge a guess (shot in the dark here), and say, no, it doesn't matter what account belongs to whom. As long as there are funds available, the IRS will come a-snatching-away of the funds from said account.

But, having not ever paid an IRS debt on behalf of a client, I cannot say for certain. However, I did stay at a Holiday Inn Express last night, so.....
 


Return to Taxation



Who is online

Users browsing this forum: Google [Bot], HowardS, itssewtaxing, JoJoCPA, JR1, lckent, MAPCPA60, msmith7305, sjrcpa, SumwunLost, TaxDude, Terry Oraha, Treetopclimes and 208 guests