UltraTax CS: 1065 Electronic payments

Alerts and notices

The IRS allows taxpayers to pay balances due on partnership returns and extensions by check, initiating an electronic funds transfer, or 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. 

Penalties and certain types of taxes due on partnership returns must be paid by check.

Electronic Funds Transfer (EFT)

Electronic funds transfer (EFT) payments happen outside of UltraTax CS and are not initiated by the program. By default, UltraTax CS will include instructions for using ACH Debit Remittance Method and the ACH Credit Remittance Method on electronically filed returns. For paper filed returns, choose EFTPS as the payment method on Screen Letter in the General folder. It is recommended that the taxpayer make the payment by EFT at least one business day before the due date of the return. The taxpayer needs to contact the EFTPS Financial Agent of the U.S. Treasury and direct the agent to initiate a withdrawal from the taxpayer's account.

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 or use EFTPS, 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. View the contents of the e-file to verify whether EFW information was included. For more information, see Viewing the status and content of 1065 electronically filed returns

If the e-file includes the EFW information, 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.

Return payment

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

Go to the 1065 screen in the General folder and fill out the Telephone number in the Partnership Information section.

Go to the Bank screen in the General folder and enter the bank information. The bank must be located inside of the United States.

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. Enter the requested payment date in the Electronic funds withdrawal for amended returns: 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.

Extension payment

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

  1. Go to the Pmt screen in the Payments folder.
  2. 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 total tax liability (Force) and Balance due on extension (Force) fields, respectively.

Go to the 1065 screen in the General folder and fill out the Telephone number in the Partnership Information section.

Go to the Bank screen in the General folder and enter the bank information. The bank must be located inside of the United States.

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 requested withdrawal date in the Electronic funds withdrawal for extension: Requested payment date field.

Electronic funds withdrawal is only available for electronically filed extensions.

  1. Go to the ELF screen in the Electronic Filing folder and mark the File extension electronically field. 
  2. Before transmitting the extension to the IRS, you must go to View > Diagnostics > ELF Critical tab and clear all ELF Critical diagnostics.

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