Estimated Tax for Clients Still on Extension

As we approach September 16, clients who are still on extension due to outstanding Schedules K-1 or other issues may want to make estimated tax payments by debit, instead of writing a check. Generally, tax software does not allow such debit payments to be scheduled until a client’s return is finalized and e-filed.

There are alternative methods for scheduling estimated tax payments by debits, outside of tax preparation software.

The U.S. Treasury offers a system that allows such estimated tax payments to be scheduled as debits. The system allows this scheduling without creating a specific account for the client. The link is https://www.irs.gov/payments/direct-pay.

New York State allows estimated tax payments to be scheduled as debits using its online services account. To use this system, practitioners need to, first, obtain a signed EZ-Rep Form TR-2000 from the client to set up an online services account for the client. The link to the New York online services system for practitioners is https://www.tax.ny.gov/online/tp.htm.

States other than New York typically offer similar online services accounts that can be used to schedule debits for estimated taxes.

Are you registered for one of our upcoming seminars in December and January? If you are not already registered, register here so you’ll be fully prepared!