Payments and Refunds

Out of Scope:

  • Application for Tentative Refund (Form 1045).
  • Extension of Time for Payment of Tax Due to Undue hardship (Form 1127).
  • Underpayment of Estimated Tax by Individuals… (Form 2210).

Tax Slayer entry:

Use the eFile TS page to enter type of payment and bank information

  • Federal and state payments/refunds are handled separately.
  • TaxSlayer does not calculate penalties so no action is required to remove them.

Federal return type options:

Balance Due Refund
via USPS via bank via USPS via bank
E-file Mail Payment Direct Debit Electronic Mailed Direct Deposit
Paper Paper return Paper with Direct Debit Paper return Paper with Direct Deposit

 


Apply some or part of the refund to next year’s taxes:

  • Enter the amount on the Federal Section > Payments & Estimates TS page.
  • For Colorado: Enter the amount on the State Section > Payments TS page.

Taxpayer has a refund:

By check:

  • For Federal  and State return, select “Electronic Mailed”.

By electronic funds transfer:

  • For Federal  return, select “Direct Deposit” as a return type. For State, select “Send state through bank”. A bank information field will appear. It appears that only one bank can be entered for all direct deposits.
  • You will enter the information twice on the same TS page – do not use copy and paste!
  • To other than a checking or savings bank account…
    • To a CollegeInvest account, see below and go here for routing numbers.
    • To an IRA, HSA or brokerage account, be sure the account allows it and your account custodian knows for which year is to be credited and whether to use the “checking” or “savings” option.
    • To a myRA® or TreasuryDirect® account, use the “savings” option.
    • To a RELOADABLE debit card:
      • The TP must have their own prepaid debit card that accepts direct deposit. The IRS does not provide the card.
      • Treat the refund as if it were an electronic funds transfer, using only official documentation of routing number and account number. The card number is not the account number.
      • Verify that the last 4 digits of the card match the code on the official documentation.

By multiple means, including savings bonds:

  • Form 8888 must be specified as a site option. Then, all returns use that form.
  • When form 8888 is used, the first account listed is always used for the state return. At least $1 of Federal debit or credit must also use that first entry.

Taxpayer has an amount due:

By check:

  • For Federal  return, select “Mail Payment” as a return type. For State, select “Electric state balance due”. A bank information field will appear. It appears that only one bank can be entered for all direct deposits.
  • When printing the return, give the TP the payment voucher and a pre-addressed envelope and advise them to send it in prior to April 15th to avoid interest charges.

By electronic funds transfer:

  • Select “Direct Deposit” type of return and enter bank information.
  • For Colorado: Select “Direct Deposit” type of return and enter bank information.

Installment Agreement Request:

This will result in fees in addition to interest and penalties.

  • Use the Federal Section > Payments & Estimates > Underpayment of Estimated Tax TS page to request an Installment Agreement. You will be prompted to enter contact information for the taxpayer.
  • The taxpayer can also do this online at http://irs.gov or in response to a bill from the IRS.
  • Do not use this process if the taxpayer is already paying on an earlier installment agreement or if the client can pay the amount owed within 120 days.

Other:

IRS Pub 5034 – Tax payment options

Special note regarding ACA Shared Responsibility Payments (SRP):

If there is an underpayment penalty due and there is excess advance premium tax credit that must be repaid, IRS Notice 2015-9 provides penalty relief for the taxpayer. Penalty relief may also apply if the taxpayer cannot pay their return balance due by April 15 and the balance due is attributable to repayment of the excess advance premium tax credit. However, the IRS may still automatically assess a penalty against the taxpayer and send a letter demanding payment. Per Notice 2015-9, a taxpayer who received excess advance premium tax credit should respond to such a demand with a letter that contains the statement: “I am eligible for the relief granted under Notice 2015-9 because I received excess advance payment of the premium tax credit.” Tip: no penalty applies for any shared responsibility payment that may be due and the IRS should properly handle this.


Estimated tax payments for the coming year:

Tax for the new year can be estimated using the Estimated Tax Worksheet if expected to be significantly different than the current tax year.

By check:

  • For Federal, use the Federal Section > Payments & Estimates > Vouchers for Next Year’s Estimated Payments TS page.
  • For Colorado, use the State Section > Miscellaneous Forms > Estimated Payment Vouchers, Form 104EP TS page.

By electronic funds transfer:

  • Tax Slayer appears not to provide this option.