Year is in question

[buzzardbreath]

In their rush to an increasingly automated world, the IRS no longer provides (or accepts) coupons for estimated payments if the taxpayer is a business. Estimated payments are now made part of the EFTPS activity. One of the menu questions on the EFTPS is to punch in the year to which the 1120 payment applies.

Splitdivide, Inc. is a C corp with a fiscal year ended September 30th. Their most recent year end was 09/30/13 and their next fiscal y/e will be 09/30/14. In spite of most of their year being in 2014, they will use 2013 tax forms when filing their returns.

One of their people uses EFTPS to make estimated tax payments. The telephone menu asks him to punch in the relevant year to apply the payment.

What should be punched in, "13" or "14".

[Burke]

It would be the year in which the final day of the fiscal tax year ends. Any estimated tax payment made at this time would be for 2014. The tax return will indicate the fiscal year as ending in 2014, even if they use the "2013" forms

[Maribeth]

I believe that it is the day that the tax year begins. The tax year 10/1/13 - 9/30/14 is a 2013 tax year and will be filed on a 2013 tax form. Shouldn't the payment be for 2013?

[TaxGuyBill]

I agree with Maribeth.


From the 1120 instructions:

File the 2013 return for calendar year 2013 and fiscal years that begin in 2013 and end in 2014.

http://www.irs.gov/instructions/i1120/ch02.html#d0e989

If it's a "2013 return", you want it to be a 2013 tax payment.

[buzzardbreath]

Thanks for the Feedback

there is no question that the 1120 instructions tell us to use the version that the tax year begins.

The question may be "what do the instructions tell us to do about estimated payments?" I can't find them, but it is for sure a requirement for their telephone menu...

[Burke]

Same here. I researched everything I could find including the IRS EFTPS info and websites. There is a toll-free number for help for this program you can call. 1-800-555-4477. Maybe that would settle it. Since the tax year began 9/30/13, they must have made 2 payments already. What year did they use? Info on the system says if you enter the wrong year, IRS will auto-correct it. But if it is a fiscal year.....do you assume the system knows this?

[TaxGuyBill]

there is no question that the 1120 instructions tell us to use the version that the tax year begins.

The question may be "what do the instructions tell us to do about estimated payments?" I can't find them, but it is for sure a requirement for their telephone menu...

The way I read the 1120 instructions, it says 2013 RETURN, not 2013 FORM. That means (at least in my mind) 10/1/13 to 9/30/14 is considered a 2013 tax YEAR. As a 2013 tax year, it would be 2013 estimated payments.

Again, that's just the way I interpret it. I haven't seen anything definitive about it.