Technical topics regarding tax preparation.
Federal payroll liability returned to client
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16-Jan-2020 9:24am

The other day, my client handed me 2 checks from the US Treasury, both dated December, 2019 The amounts were for his 2019 1st and 2nd quarter, 941 taxes. The payments that my client sent in were paid timely. I have never had this happen before and don't quite know what the next steps are. Any help would be appreciated.

16-Jan-2020 9:26am

I didn't think you could mail checks for payroll taxes for about 5 years now. Must be EFTPS or some other epay method.

16-Jan-2020 9:40am

It appears that the 941 taxes were paid but the forms were not filed, or were not processed properly. Or the payments were doubled up. Get account transcripts for the periods and compare them to the 941's as they should've been filed and paid.

I would also tell the client not to cash those checks.

16-Jan-2020 10:38am

Forms were filed timely.

For JR, he's the only client that still uses the 941-V (payment voucher). States right on the voucher, "Make check or money order payable to United States Treasury".

16-Jan-2020 10:45am

Is his quarterly liability less than $2,500.00? If so, he is entitled to mail a check with the return and a 941-V.

16-Jan-2020 10:51am

Yes they are. Liability for the quarters were (approx.) $250.00 and $650.00.

16-Jan-2020 11:26am

Weird indeed. Wrong address? Just grasping here...sounds like a phone call will be necessary. Ugh.

17-Jan-2020 1:03pm

Get an account transcript so you can see what has posted. That may clear up the mystery.
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