UltraTax CS: 1040 Electronic payments

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MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to transmit e-files from CS Connect. Find out more.

For electronically filed returns and extensions, the IRS allows taxpayers to pay balances due and estimates by authorizing the United States Treasury Department to directly debit the amount due from a specified bank account in a process referred to as electronic funds withdrawal (EFW). In order to ensure the EFW is successful, follow the steps below depending on what kind of payment you want to make.

For EFW information directly from the IRS, see Pay Taxes by Electronic Funds Withdrawal.

Electronic Funds Withdrawal (EFW)

Cancel, change, or check the status of your EFW

For information about how to verify that your EFW is set up correctly and how the IRS handles EFW requests from UltraTax CS, click each link below. 

The process of sending an EFW to the IRS is as follows:

  1. You must enter EFW information (such as bank accounts, payment amounts, and payment dates) into UltraTax CS. The data entry depends on what kind of payment you want to make; see the sections below for detailed instructions.
  2. UltraTax CS includes whatever EFW information you entered in the e-file for the return or extension.
  3. The IRS receives the e-file (which includes the EFW information).
  4. If the return is accepted, the IRS is responsible for withdrawing the payment according to the information included in the e-file. If the return is rejected, the EFW will not take place. 

Before creating and transmitting the e-file, you should view the filing instructions to see what EFW information will be sent to the IRS.

  • If the instructions say to send a check, your EFW request is not set up correctly or is not acceptable for some reason. In that case, you should check your data entry according to the instructions below.
  • If you enter your EFW request correctly, the filing instructions will show that the IRS is authorized to withdraw the payment amount from the bank on a certain day; the instructions should accurately state the payment amount, bank information, and payment date. 

If you have not transmitted the return yet, you can change your EFW information by modifying your data entry according to the instructions below, then re-creating the e-file. If you have already transmitted the return, you cannot change EFW information per the IRS; however, the IRS does allow you to cancel the payment. For more information, see Pay Taxes by Electronic Funds Withdrawal on the IRS website.

The IRS is responsible for withdrawing the payment. Per the IRS, you should allow 7-10 business days from the date the return was accepted for a payment to be withdrawn.

To verify that the EFW request was included in the e-file, you can view the contents of the e-file. For more information, see Viewing the status and content of 1040 electronically filed returns.

If the e-file includes the EFW information and it has been more than 10 business days since the return was accepted, contact the IRS for more information on why the payment was not withdrawn. If the e-file does not include the EFW information, data entry was missing at the time the e-file was created. Review the data entry requirements below and check the date the e-file was created compared to the last time anyone opened the return for editing. Information added after the e-file was created will not be included.

Balance due return

The following information is required for EFW with a balance due return. Click each link below to view instructions. 

Go to the Gen screen in the General folder and fill out the Daytime telephone/ext number in the Taxpayer information section.

  1. Go to the Bank screen in the General folder and enter the bank information. If the fields are grayed out, delete the code in the Taxpayer verified all bank info by field.
  2. Have the taxpayer verify the bank information and enter the code for the verification method. The IRS Security Summit requires that the taxpayer confirms the bank information every year in writing and that you retain this for your records. You can use the Bank Account Verification worksheet provided in UltraTax CS to do this. Start by verifying the worksheet is set to print. You can send this to your client via organizer, eSignature, by email, or on paper

You cannot use multiple bank accounts for EFW.

You are required to specify a date for the payment to be withdrawn. Although the IRS will not withdraw the payment before the requested date, they may withdraw it after. 

  1. Go to the ELF screen in the Electronic Filing folder. 
  2. Mark the Use requested payment date of 4/17/18 field or enter the desired date in the Requested payment date field. If you are filing after the original deadline, the date you enter cannot be after the date you transmit the return to the IRS. 

Electronic funds withdrawal is only available for electronically filed returns. 

  1. Go to the ELF screen in the Electronic Filing folder and mark File this return electronically. 
  2. Before transmitting the return to the IRS, you must go to View > Diagnostics > ELF Critical tab and clear all ELF Critical diagnostics. If you want to verify that your EFW request is correct before transmitting the return, you must either clear all ELF Critical diagnostics or go to Setup > 1040 Individual > Federal tab > Other Return Options button > Client Documents tab and mark Print e-file filing instructions even when e-file critical diagnostics exist.  

Extension payment

The following information is required for EFW with an extension. Click each link below to view instructions. 

  1. Go to the Ext screen in the Payments folder.
  2. Enter a code in the Calculate extension field. 
  3. UltraTax CS calculates the total tax liability and balance due on extension based on the information in the return so far. If you don't want to complete the data entry for the client now, you can manually enter the total tax liability and the amount you want to pay with the extension in the Estimate of ttotal tax liability (Force) and Balance due on extension (Force) fields, respectively. 

Go to the Gen screen in the General folder and fill out the Daytime telephone/ext number in the Taxpayer information section.

  1. Go to the Bank screen in the General folder and enter the bank information. If the fields are grayed out, delete the code in the Taxpayer verified all bank info by field.
  2. Have the taxpayer verify the bank information and enter the code for the verification method. The IRS Security Summit requires that the taxpayer confirms the bank information every year in writing and that you retain this for your records. You can use the Bank Account Verification worksheet provided in UltraTax CS to do this. Start by verifying the worksheet is set to print. You can send this to your client via organizer, eSignature, by email, or on paper.

You cannot use multiple bank accounts for EFW.

You are required to specify a date for the payment to be withdrawn. Although the IRS will not withdraw the payment before the requested date, they may withdraw it after. 

  1. Go to the ELF screen in the Electronic Filing folder. 
  2. In the Extension information section, enter the desired withdrawal date in the Electronic funds withdrawal for extensions requested payment date field.

Electronic funds withdrawal is only available if you are electronically filing the extension. 

  1. Go to the ELF screen in the Electronic Filing folder and use the File extension electronically drop-down to choose the extension form you are using. 
  2. Before transmitting the extension to the IRS, you must go to View > Diagnostics > ELF Critical tab and clear all ELF Critical diagnostics. If you want to verify that your EFW request is correct before transmitting the return, you must either clear all ELF Critical diagnostics or go to Setup > 1040 Individual > Federal tab > Other Return Options button > Client Documents tab and mark Print e-file filing instructions even when e-file critical diagnostics exist.  

Estimates

The following information is required for EFW with estimated tax payments. Click each link below to view instructions.

You cannot choose a date for estimated payments to be withdrawn; the dates are determined by the IRS for each quarter. Therefore, there is no place to enter a requested payment date for EFW for estimated payments.

  1. Go to the Est screen in the Payments folder.
  2. Enter a code in the 1040-ES - 2018 declaration field.
  3. Depending on the code you choose, there may be additional data entry required in the fields below the code. Fields will be labeled with the code number they apply to. 
  4. If you have an overpayment you want to apply to the estimates, fill out the 2017 Overpayment application section of this screen. 
  5. Enter any 2017 payment information in the 2017 Federal Payments section. Amounts you enter here can affect estimate amounts. Click here to see details about each field on the Est screen. 

Go to the Gen screen in the General folder and fill out the Daytime telephone/ext number in the Taxpayer information section.

  1. Go to the Bank screen in the General folder and enter the bank information. If the fields are grayed out, delete the code in the Taxpayer verified all bank info by field.
  2. Have the taxpayer verify the bank information and enter the code for the verification method. The IRS Security Summit requires that the taxpayer confirms the bank information every year in writing and that you retain this for your records. You can use the Bank Account Verification worksheet provided in UltraTax CS to do this. Start by verifying the worksheet is set to print. You can send this to your client via organizer, eSignature, by email, or on paper.

You cannot use multiple bank accounts for EFW.

  1. Go to the ELF screen in the Electronic Filing folder. 
  2. Go to the Electronic funds withdrawal for estimated tax by quarter field. For each quarter you want to pay via EFW, choose whether you want to send the request with the return or the extension.

Electronic funds withdrawal is only available if you are electronically filing the return or extension. 

  1. Go to the ELF screen in the Electronic Filing folder and mark File this return electronically. 
  2. Before transmitting the return to the IRS, you must go to View > Diagnostics > ELF Critical tab and clear all ELF Critical diagnostics. If you want to verify that your EFW request is correct before transmitting the return, you must either clear all ELF Critical diagnostics or go to Setup > 1040 Individual > Federal tab > Other Return Options button > Client Documents tab and mark Print e-file filing instructions even when e-file critical diagnostics exist.

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