CCH Software News - CCH® ProSystem fx® Tax - IRS Lifts Direct Debit Business Rules To Allow 7/15 Electronically Filed Payments

  • Article Type:
  • Documentation
  • Last Modified:
  • 03/27/2020

Objectives

Document CCH Software News email distributed to CCH® ProSystem fx® Tax customers on March 26th, 2020.

Environment

CCH® ProSystem fx® Tax

Details

Dear CCH® ProSystem fx® Tax Customer:

On Wednesday, March 25, the IRS announced that it has lifted the business rules related to direct debit more than five days after an electronic file is transmitted. This means that the IRS will accept payments delayed until July 15 for electronically filed returns, including the first quarter estimate payment.

We are escalating changes in our programs and will have an unscheduled release to make this an automatic feature. Until that future release occurs, the following steps should be taken to delay the return payment to July 15 for current e-filed returns. Estimated tax payments cannot be delayed within the electronic file currently without future program updates.

Individual

Enter the deferred payment date, up to and including July 15, 2020, in General >  Basic Data > Direct Deposit/Electronic Funds Withdrawal > Withdrawal Date (Interview Form BNK-1, Box 43). Use the override code "Sunflower" in Office Manager > Configure Tax Prep > Electronic Filing Options > 1040/Individual > Reserved to impact all returns or General > Electronic Filing > General > Line 26  (Interview Form EF-1, Box 75) to impact returns separately within Tax.

Corporation

Enter the deferred payment date, up to and including July 15, 2020, in General >  Basic Data > Direct Deposit/Electronic Funds Withdrawal > Withdrawal Date (Interview Form BNK-1, Box 41). Use the override code "white10" in Office Manager > Configure Tax Prep > Electronic Filing Options > 1120/Corporation > Reserved to impact all returns or General > Electronic Filing > General > Line 22 (Interview Form EF-1, Box 80) to impact returns separately within Tax.

Fiduciary

Enter the deferred payment date, up to and including July 15, 2020, in General >  Basic Data > Direct Deposit/Electronic Funds Withdrawal > Withdrawal Date (Interview Form BNK-1, Box 41). Use the override code "Fontina" in Office Manager > Configure Tax Prep > Electronic Filing Options > 1041/Fiduciary > Reserved to impact all returns or General > Electronic Filing > General > Line 22 (Interview Form EF-1, Box 90) to impact returns separately within Tax.

Notes:
  • The override codes for each system will change with the posting of Release 2019-3.3 on Sunday, March 29, 2020.
  • State information related to similar business rules has not been announced. State direct debit payments are not currently allowed to be electronically filed after April 15.
  • Returns that have already been transmitted to the IRS cannot be revised by CCH. Payments set for April 15 withdrawal will be withdrawn on April 15. Intervention with the IRS and state taxing authorities is the only current recourse.
  • If you would like to file your tax year 2020 estimates and pay the first estimate on July 15, 2020, you will need to use paper vouchers at this time. The ability to electronically file these with July 15, 2020, payment dates will be added in a later release.
  • Please make sure you have cleared all the other disqualifying diagnostics prior to exporting with the bank payment disqualifying diagnostic. Returns can still be rejected if other disqualifying diagnostics are present.
Please reference our March 23 CCH Software News to help you adjust these returns prior to our next program release.

Find answers to your questions in our Knowledge Base, and visit the Wolters Kluwer Tax & Accounting Community forums to connect with professionals like you.

Please feel free to Contact Us online if you have any questions.

Sincerely,

Wolters Kluwer Tax & Accounting, North America

Please reference article 108948  to help you adjust these returns prior to our next program release: https://support.cch.com/kb/solution/000108948/CCH-Software-News-July-15th-Filing-Deadline 

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