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January 12, 2022
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IRS Tax Payments not processing - but QBO says they have

  • January 12, 2022
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Sorry in advance for the length....

 

I am using QBO Core payroll and simple start Quickbooks.  Several months ago, I hired a half-time employee and set up payroll through QBO.  That is the only employee.  I am in California so I set up two payees, EDD for State and IRS for Fed (FICA and FUTA). The QBO Payroll settings are exactly the same for EDD and IRS payments.  Both are linked to Chase Bank.

 

Payroll is weekly and everything has gone smoothly.  The employee is paid by direct deposit.  Each week, I see taxes owed and process them accordingly.  I see the records in the various accounts ultimately with cash being credited and the liability zeroed out.  Everything looks right (paycheck, expense, payable, cash).

 

Now... my problem.  State payments have been made perfectly and I can reconcile to my bank statements.

Federal payments show in every QBO report and transaction (including cash) that they have been paid -- but not a dollar has gone to the IRS.  AND - I can find no record of where those $$$$ went in QuickBooks.  I have not received any error messages from QBO or Chase bank.

 

Reports show no liability remaining.  Tax liability report shows zero, The balance sheet, liability zero.  Expense shows the total State and Fed tax amounts.  And, even though no payment was made, cash has been reduced by the payment amount.

 

I'm hoping that bit of the above information will be useful in resolving my problem.

 

Note:  I have received late notices from the IRS so I need to pay them (through QBO or EFTPS).  QBO support (human) would not connect me with anyone except the "tax resolution" folks who wanted to consult on tax notices, penalties, etc., not solving my QuickBooks problem.  When they didn't help, they sent me back to an automated "how can I help you" line. Absolutely a waste of 45 minutes.

 

I need to fix this.  Otherwise, after I get current with the IRS, I will still have this problem.

Thanks for any help!

Best answer by katherinejoyceO

Hi there, @Clay803

 

I appreciate you for sharing the detailed information on your concern. The automated tax payments and form filings feature are enabled in QuickBooks Online Payroll Core by default. 

 

It could be that this feature is turned off on your end. Hence, it didn't go to the IRS. Let's double-check your settings by following these steps below: 

 

  1. Go to the Settings menu, then select Payroll Settings.
  2. In the Taxes and forms section, select Edit (pencil icon).
  3. Check to see the Automate taxes and forms box.

 

If it's unchecked, that means it's turned off. You'll need to pay your taxes manually directly to the IRS. 

 

If it's checked, I'd suggest you contact our Payroll Care team again to help you check what's causing this to happen. They can also investigate if need be. 

 

You can check out this article for further insights: Manage automatic tax payments and form filings.

 

For future reference, read through this article to help you learn more about what you need to pay and file in QuickBooks Online.

 

Get back here if you have additional or other concerns. I'm always around to help you again. 

 

1 reply

katherinejoyceO
January 12, 2022

Hi there, @Clay803

 

I appreciate you for sharing the detailed information on your concern. The automated tax payments and form filings feature are enabled in QuickBooks Online Payroll Core by default. 

 

It could be that this feature is turned off on your end. Hence, it didn't go to the IRS. Let's double-check your settings by following these steps below: 

 

  1. Go to the Settings menu, then select Payroll Settings.
  2. In the Taxes and forms section, select Edit (pencil icon).
  3. Check to see the Automate taxes and forms box.

 

If it's unchecked, that means it's turned off. You'll need to pay your taxes manually directly to the IRS. 

 

If it's checked, I'd suggest you contact our Payroll Care team again to help you check what's causing this to happen. They can also investigate if need be. 

 

You can check out this article for further insights: Manage automatic tax payments and form filings.

 

For future reference, read through this article to help you learn more about what you need to pay and file in QuickBooks Online.

 

Get back here if you have additional or other concerns. I'm always around to help you again. 

 

Clay803Author
January 12, 2022

Katherine - You hit it right on.

 

That explains why everything seemed like it was paid -- QBO thought I was paying it myself.  Duh!

 

Thank you very much. 

 

I'm off to the EFTPS website.  :-)