Electronic Tax Estimates

[arlo]

I myself do not file estimated taxes but I have a dozen of so older people without a computer that I have them use paper tax estimates. Since this will no longer be allowed
in 2012, what are some of the ways this forum will use for their clients?

[Gary2]

I hadn't seen that, but can't they just pay directly using EFTPS, at no charge? They probably need to make the payments a few days before the deadline, but that seems like the simplest option.

[tilt53]

Some of my older clients (without computers) can barely put their shoes on. And they're expected to jump through the hoops and sign up for EFTPS and remember to do phone scheduling of payments? I don't think so.

Arlo, can you point us to a cite, please?

[FEDUKE404]

Electronic payment only?

Some of my older clients (without computers) can barely put their shoes on. And they're expected to jump through the hoops and sign up for EFTPS and remember to do phone scheduling of payments? I don't think so.

Arlo, can you point us to a cite, please?

I tend to agree.

Although I've used EFTPS myself, it is not the most "user friendly" system out there. I cannot imagine the folks without computers and/or bare computer knowledge enduring that system.

For folks with "stable" income I recommend setting up the next year federal estimated payments (automatic direct debit) at the time of efiling. That still leaves the issue of state payments (which can now be made online for NC) as well as having to deal with "Plan B" if, for whatever reason, the federal payments need to be modified.

I'm in the same school as tilt53 - are you sure those rules are in place??? Certainly the IRS would gladly accept someone's paper check for a balance due and/or estimated tax payment.

FE

[dtlee]

I am a bit lost on this topic.

Starting in for tax year 2010, the software I use allowed me to specify Direct Debit Transactions for the Federal Estimated Tax payments for individuals. Each quarterly amount could be specified independently and was (supposedly) to be withdrawn and paid to the IRS automatically. My biggest complaint was that I need these for the state as well.

Besides individual taxes, are you saying that there are payroll or corporate taxes that these elderly taxpayers will need to submit or are you saying that the direct debit option for estimates is being eliminated in 2012?

Thanks.

[arlo]

Ftd

Federal Tax Deposits (FTD(s)) - Beginning January 1, 2011 FTD coupons can no longer be used for submitting depository taxes. Regulation 153340-09, section 6302, mandates that Form(s) 8109/8109-B (the FTD coupons) will no longer be accepted, and that FTD(s) must now be made electronically. Consider using EFTPS for making FTD payments.

Many of my client Make quarterly
1040 estimated tax payments using the coupons my software provides.
I found this in looking up EFTPS on the IRS site. I thought it ment that paper coupons would no longer be accepted by the IRS.

I might have run up a red flag, sorry. I see that form 8109 is used for employment, excise and corp. taxes

[dtlee]

(Duplicated somehow)

[dtlee]

Thanks for clarifying

Federal Tax Deposits (FTD(s)) - Beginning January 1, 2011 FTD coupons can no longer be used for submitting depository taxes. Regulation 153340-09, section 6302, mandates that Form(s) 8109/8109-B (the FTD coupons) will no longer be accepted, and that FTD(s) must now be made electronically. Consider using EFTPS for making FTD payments.

Many of my client Make quarterly
1040 estimated tax payments using the coupons my software provides.
I found this in looking up EFTPS on the IRS site. I thought it ment that paper coupons would no longer be accepted by the IRS.

Thanks for clarifying.

My clients either use the 1040 ES form or use direct deposit to make their estimates for personal taxes. I have never used Form 8109/8109-B coupons for personal taxes. Are these required if there are household employees? I thought not. I am unclear as to when those would be used for personal tax returns.

Thanks.

[ChEAr$]

Thanks for clarifying.

My clients either use the 1040 ES form or use direct deposit to make their estimates for personal taxes. I have never used Form 8109/8109-B coupons for personal taxes. Are these required if there are household employees? I thought not. I am unclear as to when those would be used for personal tax returns.

Thanks.

Well geesh. Blue coupons have never been used for personal taxes.

And the blue coupons are not used for added 1040 taxes for household employees, either.
Use the regular 1040es.

as an aside, I will never recommend to the elderly that they switch to EFTS.

[dtlee]

Thank you, Harlan

I did not think that we ever used coupons for personal tax returns (technically, the IRS considers the 1040 ES to be a voucher). I suspect that we will be encouraged to use Direct Debit for estimates, but still be allowed to use vouchers for quite a while. I know a lot of older clients who do not like Direct Debit any more than they like Direct Deposit (plus, at least they can show me that they wrote a check when they send it in with the voucher).

[taxea]

I myself do not file estimated taxes but I have a dozen of so older people without a computer that I have them use paper tax estimates. Since this will no longer be allowed
in 2012, what are some of the ways this forum will use for their clients?

Set it up for them throught EFTPS for automatic withdrawl from a checking or savings account.
I don't see how the IRS can expect someonw without a computer to be required to use one. Have you asked IRS what they expect these people to do?

I know we are requied to efile returns as pros but IRS has to have a way for non-computer TPs to pay.
All this will be even more complicated once the USPS is out of business.

[Jiggers]

Mixing Apples and Oranges

I think you are getting confused.

The FTD coupons are for the payroll taxes that businesses deposit. All businesses have had to used EFTPS for their payroll tax deposits this year.

The 1040ES will continue and will be mailed in.

[JoshinNC]

Now that we have all near about s**t our britches

let's get back to watching some football...er, I mean, finishing up those 10/15 extensions.

[Burke]

I think you are getting confused.

The FTD coupons are for the payroll taxes that businesses deposit. All businesses have had to used EFTPS for their payroll tax deposits this year.

The 1040ES will continue and will be mailed in.

You are correct. I thought it was the banks that dropped this service, but maybe the IRS just decided to eliminate the middle man for FICA/W-H deposits. The banks didn't like the system either since they made no money on it.