Intuit Lacerte and Intuit ProConnect software issue June 2018 Tax News

Incorrect bank account type for first quarter estimates

Due to an Intuit Lacerte and Intuit ProConnect Tax Online software issue, our system may have rejected first quarter electronically submitted estimated tax payment requests for having an incorrect account type indicator.

We recently discovered an issue with Intuit Lacerte and Intuit ProConnect Tax Online software products. The account type indicators for “Checking” and “Savings” always passed to us as “Savings,” even if you indicated the account type as “Checking.” The bank routing and account numbers contained within the estimated tax payment request correctly reflected the preparer’s entries.

As a result, electronically transmitted estimated tax payments (Form 540-ES) for tax year 2018 transmitted to us between January 23, 2018, and April 25, 2018, could have been rejected by your client’s financial institution. Future scheduled payments transmitted during this timeframe could be impacted as well.

We are collaborating with Intuit to identify impacted taxpayers and assist with resolution. Intuit sent letters directly to affected tax practitioners. We will waive FTB-imposed dishonored check fees on impacted taxpayers’ accounts and will give taxpayers an opportunity to submit first quarter estimated tax payment that will be considered timely.

If your client’s first quarter estimated tax payment was rejected/dishonored by the financial institution or was not debited from your client’s account, they were advised to resubmit their payment within 30 days from the date of the Lacerte notification, which was issued on May 9, 2018. You clients can use Web Pay on our website.

If during the timeframe above, any future Tax Year 2018 estimate payment requests were made electronically using Intuit Lacerte and Intuit ProConnect Tax Online software, those payments may have an account type of “Savings.” If your client would like to have future estimate payments debited from their “Savings” account, no further action is needed.

If your client would like to cancel future estimate payments from “Savings” account type, they will need to contact our e-Programs Help Desk at (916) 845-0353. They must resubmit a payment with the correct account information via Web Pay.