Options - Payment/Refund

[Snaggletooth]

The old form 8453 allowed for "check-the-box" designation for how the taxpayer preferred to handle his payment/refund.

Form 8879 does not allow for this. It is my understanding that even if a return is filed electronically, various options remain. The taxpayer may be mailed a check, direct deposited, pay by check if he owes money, or have the money drafted out of his bank account.

How do we document their presence nowadays??

[JG EA]

My software prints the direct deposit information on the 8879. It seems it should be written in if the client decides after the 8879 is printed so the form they sign has that information.

I don't know if the software prints direct debit if they choose that for a balance due. I've only had a couple of people ever want that. I tried it last year from my own account and it didn't work - I don't know why and I had to send a check in later. (Still on time however.)

[Gene V]

Snaggletooth
I verify the direct deposit information with my clients on the second page of Form 1040
Line 74a, if there is no direct deposit, then line 74a will be blank.
My program doesn't print nothing on the 8879-I wish it did.

If they owe money and have it taken out of their checking account, my program
Prints out a page call “e-file Payment Record-Balance Due”
The form has all the required information on it.

http://www.irs.gov/efile/article/0,,id=101317,00.html

[Snaggletooth]

Thanks

Thanks for responding. It appears there is lack of certainty on the issue.

I'm increasingly leery of software solutions to information not disclosed on the 1040.
Birthdates have fallen into that category for some time now.

For example, on JG's example the software indicates the preference based on whether the routing/acct # is provided on page 2 of the 1040. This is scary. The software gives the preparer the option to pull all personal information from the previous year, and this includes the direct deposit information. A little dangerous, as this can slip past the preparer (although there's no excuse for failure to review). This information may no longer be correct, and may not conform to the client's wishes.

I don't think there is any substitute for direct, definitive answer as to what the taxpayer wishes to do.

[JG EA]

It is not all that scary. You have to imput the banking information twice. So, even though the numbers are carried over, I have to mark that I want to use them and then imput them again while the original numbers go *** so that I cannot just copy.

[Snaggletooth]

Good Control

JG - your software has foreseen how easy it is to fall victim to cloned information, and has put in a good control. What software do you use?

[dmj4]

My software does not bring the bank info forward, either. I do have to enter it twice. Once on a Main Info Sheet and again on the second page of 1040.

I have quite a few people that efile but want it mailed. I also have quite a few that use direct debit. I have not had a problem with direct debit. I have a few that want their estimated tax payments direct debited.

dmj4

[S T]

Taxsoftware Mine also

My software also doesn't indicate on the 8879, but it is indicated on page 2 of the client copy of form 1040, and then I have an additional bank verification sheet.

So far has not been an issue

Sandy

[thomtax]

I use Drake. If the refund is being direct deposited, it will show the routing and account number on the 8879. If a check is being mailed, it shows nothing special on the 8879.

LT

[ChEAr$]

Taxwise

is my software of choice. Bank info is not carried forward year to year. That info is entered twice,
once on main info page (as mentioned above) and on page 2 of 1040. And bank info is not
printed on the 8879, and for good reason I think.

What I do not do is enter bank info before client's file copy is printed, this for security reasons.
His bank info I enter from his check before I make up the efile. And I certainly don't print page
2 of 1040 for my files with bank info on it; again for security reasons.