Form 8878 and NJ 630 Extension forms

[NSNM]

I am e-filing extension for a client who has Federal overpayment.

As I understand, in this situation, I can e-file Form 4868 and taxpayer's signature authorization on Form 8878 is not required.

Taxpayer has NJ State tax due and wants to pay with e-filing Form 630 (extension)
NJ has discontinued authorization Form NJ-8878 for 2011 tax year filing.

What I want to know is what document or form do I use for taxpayer's authorization to make tax payment with NJ-630.

Since NJ-8878 does not exist, do I create non-standard authorization letter for obtaining taxpayer's signature ?

What any of you are doing in similar situation. I know taxpayer can send a check with NJ-630.
But time and distance has not been suitable, and want to e-file NJ extension.

Thanks for any suggestions.

[Koss]

NJ Extension

I don't think a signature is required.

I haven't done a NJ extension this year. But I tested it in my software. It allows me to get all the way to the point of submission without asking me to print anything for a signature.

And yes, I made sure that the "return" was configured to show a balance due, and I even entered an RTN and a DAN to make the payment. The software did ask me to print the NJ-630 and review it. And presumably the client should get a copy. But as you know, the form doesn't have a space for a signature.

While the IRS certainly requires a signature on Form 8878 for an ACH payment, I don't think this requirement is embedded anywhere in the law. The IRS requirement is an IRS procedure, established by the IRS, as part of the IRS e-file program.

The simple reality is that in other contexts, we make ACH payments over the phone all the time. I'm not even going to try to look it up. My point is that the Uniform Commercial Code and consumer banking regulations allow verbal authorization for electronic check payments.

You're a middleman. Your enrollment in the New Jersey e-file program authorizes you to act as an agent for the taxpayer. With their verbal authorization, you can enter the RTN and DAN into your professional tax software for the purpose of making an extension payment.

If you feel the need to get something signed in order to document the authorization, that won't do any harm. But I don't think it's required.

BMK

[Koss]

Software

"The software let me do it, so it must be okay."



Ummm... yeah. Right.

Normally I would be ranting about this kind of reasoning. I call it "the tail wagging the dog."

When it comes to issues that hinge on tax theory, such as whether something is subject to SE tax, or whether an amount from a Schedule K-1 belongs on a certain line on Schedule A, it is a very serious mistake to rely on the software. Tax software does make mistakes. And the user also makes mistakes, and it's garbage in, garbage out.

But this is a little different. The question is purely procedural, and the question is really about the software itself.

The question is:

When a tax pro uses professional software to file a New Jersey extension with an electronic payment, what form does the taxpayer sign to authorize the electronic payment?

The answer is: none.

The software developers bear most, but not all, of the responsibility to assure that their software complies with each state's e-filing requirements.

In this particular case, I think it is reasonable to conclude that if the form doesn't exist, it isn't required.

BMK

[NSNM]

Thank you Koss

Your answers are always so clear and concise to the point.
You explain it so well from the origin of the tax issue to the end
It is so very helpful to me and all other readers.
Your knowledge and experience is our blessing.
Thank you so much, Koss. I appreciate and value your answers.
After reading your response, I was able to file 3 other similar extensions confidently.
And I may add that this message board gives so much practical knowledge that we don't get in any university or in individual practice and many of regular contributors have enriched this message board. Thanks again to all.