electronic payment of balance due returns

[sdtaxman]

Does anyone have experience with the electronic payment of balance due returns? I am considering offering and trying to encourage my clients to pay the taxes this way and was courious if anyone has had good or bad experience with the payment method. I am sure there will be some that are concerned about giving out their account number.

[DTS]

Yes

I did this for a client a few years back, only one client. I believe the charge was $40 for the privilege of doing this. Client was not happy, but had no choice that morning.

D

[BOB W]

I do it all the time. Never had a bank charge my client for it. But I do remember many years back of a potential fee.

[DTS]

???

Are you talking about paying a balance due by credit card? That's what I was referring to.

D

[taxea]

It works great. I only do it if the client wants to have the money transferred from a checking or savings account. If they want to use a credit card I advise them of the extra cost and provide them with the phone number or IRS site where they can do it directly. taxea

[Mike Mac]

Works great

The client does not have anything to remember to mail out or attach postage to. All they have to do is remember to have enough funds in the account on the date they tell the IRS to debit the account. Most of my folks who use it pick a date between 4/10 and 4/13.

[BHoffman]

sdtaxman - if you're talking about the direct debit, I do this all the time and it's always worked fine. I pay my own tax this way and have for several years now. Never had any problem at all.

[erchess]

Electronic Payment

With my two employers in this business every year it seems like a few did direct debit and that worked fine. Since I went out on my own I have done it once and again it worked fine.

When they want to pay by credit card I also just give them the number to call and the website to visit and everyone has said that things went smoothly. I have on occasion paid my own taxes that way to the IRS, State, and County and my parents' also. Never a personal problem.

[Jiggers]

Electronic payment

Great for the elderly. I use it all the time. For those filing now and don't want to make the payment until Apr 15 and would probably forget!

[Gene V]

Wondering

I do this all the time also, just wondering, if the client close his bank account before the payment was withdrawn, could he send a check to the IRS, and would they credit his account properly---I’m sure they will get confuse

[oceanlovin'ea]

Always worked well for me

I have done this for several clients in the past 2 or 3 years. Some are concerned that IRS will have their bank account information. I just tell them that if the IRS wants to know their bank account number, they can get it anyway.

They just have to remember to have that amount of money in the bank when the payment is going to be deducted.

It is nice because they can schedule their payment for April 15th and then know it will be paid on time.

Never had a problem.

Linda

[DaveO]

Call me the cynic

But I would never allow the IRS electronic access to my bank account.

[taxea]

If the client closed the account and their check didn't get to the IRS by 4/15, the client would have penalty and interest to pay.
Dave O...I suggest that my client open an account in a different bank, maintain a small balance to keep the account active and pay his taxes out of this account. If for any reason the IRS decides to levy...this is the account they will do it with. taxea