Checking Account# on Balance Due Returns

[JohnH]

Let's say a taxpayer owes money on his 2007 return.

He files & pays by Apr 15 (either paper or electronically). He will be mailed a rebate check sometime between May and August.

However, if he enters his routing number and checking account number on his "balance due" tax filing, his rebate check will be direct deposited. Probably means he will get his rebate a little earlier.

So whereas we ordinarily would not worry about entering checking account info on a "balance due" return, this year the taxpayer will benefit by our entering that info if we want to take the time to do that.

(I didn't dream this up - it's explained on the IRS web site)

[SCL]

just to peel the onion. i think you mail (which is 80%+/- out of the preparer mainstream; but you know that, and may the force be with you).

i don't think efile 'info' can accommodate this scenario? i'm open for suggestions.

[JohnH]

That's interesting. As you pointed out, I wouldn't know that e-flinging doesn't support this scenario. One would think that IRS expects software vendors to support it since they mention it on their web site. Maybe there's just a disconnect, or maybe IRS is just addressing the comment to paper filers.

In any case, since I continue to paper file as being in my clients' best interests, I'll just point out to those who owe money that the ability to have their rebate direct deposited in additional no-cost service that I am providing for them. :)

[Chrisbry]

i don't think efile 'info' can accommodate this scenario? i'm open for suggestions.

I have checked a couple of my balance due returns and even though you input the bank information, if there is a balance due, it will NOT print the information on the return. If you look at the section, it says REFUND. You could try handwriting the information in, but I'm wondering if the IRS will take that into consideration on a paper filed balance due return.

[JohnH]

You are correct, but it's easy enough to override directly on the form.

The checking account info will print if you do that.

You can also do a "print screen" on page 2 of the 1040.

Printing it this way will omit the aggravating "xxxx" entry and leave the routing & checking number boxes blank. This enables either you or the client can hand-enter the numbers. IRS will accept computer-generated returns with the checking info entered by hand - I've had clients do that in previous years. I always print the filing copy in this manner (without the "xxx"' entry) for refund clients who fail to give me their account numbers. This gives them the option to write it in before filing if they decide to do so.

Discalimer - I hereby acknowledge that this response only applies to the 20% of us who paper file (actually I thought the number was more like 2% based on some of the comments I get), but keep in mind that we neanderthals need assistance as well, and our poor clients need any advantage they can gain since they are dealing with preparers who are so far behind the technological curve. :)