1040-ES problem

[TAXBILLY]

Just got a call from one of my clients who said I sent them someone else's 1040-ES voucher by mistake. So I'll make out another one.

HOWEVER, I just called the other person who got the wrong voucher to tell them not to send it in, but they already did. They did not notice that it was not their name on the voucher. Now what do I do?

taxbilly

[GeorgeM]

Just got a call from one of my clients who said I sent them someone else's 1040-ES voucher by mistake. So I'll make out another one.

HOWEVER, I just called the other person who got the wrong voucher to tell them not to send it in, but they already did. They did not notice that it was not their name on the voucher. Now what do I do?

taxbilly

I presume you will just have to wait a bit and have the one that sent in the payment check with the IRS to see if the payment went to the right account. If it did not have the other send in a payment of the same amount and it should be a wash.

Good luck

[TAXBILLY]

I'm thinking I might have the client put a stop payment on the check and send in another check with the correct voucher. I would of course eat the bank fee.

taxbilly

[bigdadder]

I go for George M's idea----should work.

Bigdadder

[jainen]

>>I go for George M's idea<<

Me too. Hopefully they annotated the actual check with their SSN, so a copy of the canceled check front & back will get things posted correctly. If they paid too much, based on the voucher, they will get a refund. If they didn't pay enough, they should send in the balance due.

[TAXBILLY]

The reason why I'm leaning towards the stop payment route is that I would think IRS could care less who pays the estimated taxand just deposit it in the wrong account. A check can be from anyone for a payment and does not specifically have to be from the estimated tax taxpayer. Any thoughts on this? I'll need to make a decision one way or the other by Monday morning.

taxbilly

[MAMalody]

I would think that stopping payment would be far superior to have client A pay an es payment for client B. When push comes to shove, you client would not be able to prove his payments if there is any questions. I mean is the IRS going to believe, "well, Bill Smith made my payment so I made his. No I don't know who Bill Smith is, but my preparer told me this is the way I should do it."

[jainen]

>>your client would not be able to prove his payments if there is any questions<<

Of course he can prove it. He has the canceled check. At least, if he followed the instructions to write his SSN on the check and not attach it in any way to the voucher. I'm sure IRS bankers are trained like any other banker, to post from the actual check instead of the deposit slip.

[Gail in Virginia]

[

I'm sure IRS bankers are trained like any other banker, to post from the actual check instead of the deposit slip.

I am not so sure of that. In the first place, I don't think we are dealing with IRS employees - I think the payments all go to a lockbox operation. And in the second place, with it being a lockbox, I am not sure they even look at the checks. I think they peel the checks off and deposit them, and then turn around and forward the coupons to the IRS to credit the accounts. Them most that I think they will do is compare the check amount with the payment coupon amount.

My gut reaction would be to go the stop payment route - but this is not something I have personal experience with.

[TAXBILLY]

I told my client to put a stop payment order in with his bank so hopefully this will not cause more headaches. Thanx to all for your input.

taxbilly

[mcb39]

The reason why I'm leaning towards the stop payment route is that I would think IRS could care less who pays the estimated taxand just deposit it in the wrong account. A check can be from anyone for a payment and does not specifically have to be from the estimated tax taxpayer. Any thoughts on this? I'll need to make a decision one way or the other by Monday morning.

taxbilly

That is correct. I have already sent in payments for one or the other of my sons under certain circumstances (had them reimburse me). IRS never questioned the fact that the check was not from the person whose name was on the voucher. I think you did the right thing.