Discussion:Tax payment after extension & SSNs
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| Revision as of 19:18, 22 May 2008 Irsfixer (Talk | contribs) (The 1040 instruc) ← Previous diff |
Revision as of 20:31, 22 May 2008 OR Taxman (Talk | contribs) (Interesting comm) Next diff → |
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| {{ForumReplyPost|UserID=Irsfixer|Date=22 May 2008|Text=The 1040 instructions do say to include your SSN on the check. I rate the risk of the IRS misapplying a payment without a SSN on the check quite a bit higher than identity theft caused by it.}} | {{ForumReplyPost|UserID=Irsfixer|Date=22 May 2008|Text=The 1040 instructions do say to include your SSN on the check. I rate the risk of the IRS misapplying a payment without a SSN on the check quite a bit higher than identity theft caused by it.}} | ||
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| + | {{ForumReplyPost|UserID=OR Taxman|Date=22 May 2008|Text=Interesting comment, IRSfixer! Makes sense. I am going to use that line with clients when I direct them to write their SSN on their checks, per the instructions right on the 1040-V. Those that balk, I can let them decide which is more desirable: having me fix their commonly mis-applied IRS checks or them fixing their own unlikely ID theft scenario.}} | ||
Revision as of 20:31, 22 May 2008
Discussion Forum Index --> Advanced Tax Questions --> Tax payment after extension & SSNs
Discussion Forum Index --> Tax Questions --> Tax payment after extension & SSNs
| 22 May 2008 | |
| Taxpayer was advised to make a $300k extension payment. As is often the case, client felt she knew more than tax professional and only made a $100k extension payment.
Client is now worried about penalties and interest and wants to send the other $200k. If you were advising the client, would you just have her send the additional amount with a 2007 4th Quarter Voucher, a revised 4868, or merely send the check with proper identifying information and noting "2007 Form 1040"? Obviously, the major issue is that the payment gets properly credited to the proper year and SSN. | |
| 22 May 2008 | |
| I would send it with a cover letter specifying application as well as putting her SSN and "1040 - 2007" on the memo line. | |
| 22 May 2008 | |
| 'nole, don't be afraid to ask dumb questions :)
Personally I would recommend sending the payment in with a 2004Q4 1040ES coupon but would also put the SSN & "2007 1040" on memo line as fixer has recommended. But in fact it doesn't really matter, the purpose of any form is merely to make sure it gets properly applied. | |
RoyDaleOne (talk|edits) said: | 22 May 2008 |
| While the IRS asks for the SSN on the check, I do not recommend putting your SSN on the check.
The only reason I can image for the SSN is if the check and the associated paper gets separated. So that the IRS can do what with the check? Apply it to your account, without the associated paperwork how does the IRS know what period to apply a payment? Is the IRS going to contact you? The check normally has all that information preprinted. Okay, so what real purpose is the SSN on the check? Heck, all the people who can "see" the check noe has all your personal information including your SSN. | |
Outwesttax (talk|edits) said: | 22 May 2008 |
| FYI, I discovered recently that if you look at the IRS endorsement on the back of a check, you will see the SSN/EIN and where applied. (1040, year, etc.)
Looks like one way or another, the SSN is going to be there. | |
Death&Taxes (talk|edits) said: | 22 May 2008 |
| The change into the extension to a 6-month period did away with the 2688 which I would use in situations like this....in addition to those I'd file on August 15th, I would also use this form when information revealed clients might owe more money than originally thought....I would use a phrase like 'at this time taxpayer is making a payment of $........ to be applied to his liability for 200_
I leave the decision about SSN up to the client, but tell them that some clients prefer not to enter the number. I do tell them that if payment is misposted, I will charge them to straighten out the matter. RD1 is right in that usually name and address are on the check, but what if the second name on the return writes the check from his or her account. Guaranteed if IRS takes the time to locate this name, they will post it to that SS# and this will require contact with IRS. | |
| 22 May 2008 | |
| "Okay, so what real purpose is the SSN on the check?"
"The only reason I can image for the SSN is if the check and the associated paper gets separated." You answered your own question. The check goes from the IRS to the bank. The bank has your social security already. Your fear can best be classified as a phobia. | |
| 22 May 2008 | |
| You know, fixer, it's not paranoia if they REALLY ARE out to get you! | |
Death&Taxes (talk|edits) said: | 22 May 2008 |
| What is odd for me is that it was clients who brought up this issue originally; I never gave it a thought because in the words of William Shakespeare, PC, 'who steals my purse, steals trash.' Willie was an R.O. in Philadelphia Collections Group xxxx. | |
| May 22, 2008 | |
| With ID theft the way it is, I would say it is a good precaution to not enter the entire SSN on the check. Perhaps we'll see a move to using only the last four digits of the number. | |
| 22 May 2008 | |
| Fixer, I have not seen black helicopters, but my officemate had checks forged against his business checking account just last week, sent throughout the US. ID theft is very real. | |
| May 22, 2008 | |
| The last four numbers won't help the IRS figure to whose account a check is credited, but combined with a name on the check it should be sufficient.
The New Tax Guy | |
| 22 May 2008 | |
| Well, not only are you supposed to write the SSN on the check, you are also supposed to write the year and form it is associated with, ie. 2007 form 4868, 123-45-6789. then if the check gets separated from the paperwork, they know where to apply it. Would you like trying to straighten out having the check applied to the wrong account? I have a client who not only knows of someone with the same name except for the middle initial, but their SSNs are also only off by one digit. He has been dealing with mixed credit reports for years. | |
| 22 May 2008 | |
| I don't worry as much about the black helicopters as I do about the voices. I really hate the voices. Please make them stop. Wait, hold on, one of the voices sounds hot. Maybe I'll listen for a while. | |
| 22 May 2008 | |
| The 1040 instructions do say to include your SSN on the check. I rate the risk of the IRS misapplying a payment without a SSN on the check quite a bit higher than identity theft caused by it. | |
| 22 May 2008 | |
| Interesting comment, IRSfixer! Makes sense. I am going to use that line with clients when I direct them to write their SSN on their checks, per the instructions right on the 1040-V. Those that balk, I can let them decide which is more desirable: having me fix their commonly mis-applied IRS checks or them fixing their own unlikely ID theft scenario. | |
