Set the federal and state balance due payment options
Federal and state balance due payment options determine how balance due payments are remitted for an account. For example, the federal balance due payment option can be set so that the federal tax due is remitted electronically (using the EFTPS (bulk) payment method) regardless of whether the federal return is E-Filed or paper-filed.
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The payment settings for the federal and state balance due payment options are applied when the tax return is processed. Because of this, the federal and state balance due payment options must be set before the tax return is processed. If the payment setting for either balance due payment option is updated after tax return processing completes, then the return must be reprocessed to apply the updated payment setting.
Set the federal balance due payment option
The setting for the federal balance due payment option applies to all the federal balance due payments for an account. For example, the setting applies to payments associated with an account's federal 1041 return, or payments associated with an account's 990-PF, 990-T and/or 4720 return. You can set the federal balance due payment option from the Admin Controls page or a register that includes the
Pay balance due via EFTPS
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Set the federal balance due payment option before the tax return is processed. If the payment setting is updated after tax return processing completes then the return must be reprocessed to apply the updated payment setting.
To set the federal balance due payment option from the Admin Controls page:
- Open the account.
- Select theAccountmain topic then theAdmin Controlssubtopic.
- Open theElectronic Filing/Back-End Feedcollapsible section.Beginning with tax year 2021 and for accounts that require dual return processing, the options under theElectronic Filing/Back-End Feedcollapsible section apply to both the 1041 return and the 990 return types. Balance due and extension payments for accounts requiring dual return processing are available through EFTPS.
- Select the setting for the federal balance due payment option from thePay balance due via EFTPSdropdown list. The payment settings include:SettingDescriptionOnly when e-filedWhen selected, the federal balance due payment is remitted electronically only when the federal return is e-filed.TheEFTPS Balance Duesbase registers don’t indicate an electronic payment until after the federal return is e-filed.When e-filed or filed on paperWhen selected, the federal balance due is remitted electronically regardless of whether the federal return is e-filed or paper-filed.Select this option if you want to use theEFTPS Balance Duesbase registers to review the balance due amount before the federal return is e-filed.Do not pay electronicallyThis is the voucher payment method. When selected, remit the federal balance due by mailing a check and payment voucher to your IRS Service Center. The check and payment voucher must be mailed regardless of whether the federal return is e-filed or paper-filed.
- SelectSave.
Set the state balance due payment option
The state balance due payment option applies to all resident and nonresident state returns for an account. The state balance due payment option can be set from the Admin Controls page or a register that includes the
Pay State balance due electronically
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- Set the state balance due payment option before the tax return is processed. If the payment setting is updated after tax return processing completes then the return must be reprocessed to apply the updated payment setting.
- Set the settlement date using theSettlement date for state balance due payments (Does not apply to MI and RI before 2023 or MO for all years) [Date entered must have a four character year, i.e., MMDD- YYYY]Electronic Filing option. The settlement date should be a current year date that doesn’t fall on a weekend or legal holiday. See theSet the federal and state balance due payment optionssection for details.
An e-filing alert diagnostic is generated when the account's state return is processed. The e-filing alert diagnostic indicates the state balance due payment option that was selected at the time the return was processed.
To set the state balance due payment option from the Admin Controls page:
- Open the account.
- Select theAccountmain topic then theAdmin Controlssubtopic.
- In theElectronic Filing/Back-End Feedcollapsible section, select the setting for the state balance due payment option from thePay State Balance Due Electronicallydropdown list. The payment settings include:SettingDescriptionOnly when e-filedThis is the Pay with e-file method. It is the default setting. When selected:
- For all states except Missouri: The payment information is included in the e-filing data, and the payment information is submitted to the state taxing authority when the return is accepted for e-file.
- For Missouri: The voucher payment method is used. Remit the payment by mailing a check and payment voucher to the state taxing authority.
Bulk Payment (MA, MN, NY, and PA only)This is the EFTPS (bulk) payment method. When selected:- For Massachusetts, Minnesota, New York, and Pennsylvania: The state balance due payment is included in a bulk payment file. The advantage to using this method is that you can include the payment information regardless of whether the return is accepted or rejected from e-file, or is paper-filed.
- To remit a Massachusetts, Minnesota or New York balance due payment, you must prepare a payment file, download it from ONESOURCE Trust Tax, then upload it to the state taxing authority's online services website. For Pennsylvania, ONESOURCE Trust Tax transmits the balance due payment file directly to the Pennsylvania Department of Revenue after the balance due payment file is prepared. You will need to submit payment via an ACH credit to the Pennsylvania Department of Revenue, and the payment must be received by the settlement date.noteMassachusetts, Minnesota, and New York require registration before you can use the state taxing authority's website to upload the payment file. See theAbout registering to use Massachusetts, Minnesota, and New York online services websitessection for details.
- This option is not available for payments with extensions for Massachusetts, New York, and Pennsylvania. Payments for E-Filed extensions for these states will default to theOnly when E-Filedoption.
- For all other states except Missouri: The Pay with E-File method is used (see theOnly when E-Filedsetting for details).
- For Missouri: The voucher payment method is used. Remit the payment by mailing a check and payment voucher to the state taxing authority.
Do not pay electronicallyThis is the voucher payment method. When selected:- For all states except Pennsylvania: Remit the state payment by mailing a check and payment voucher to the state taxing authority or use an alternate payment method if it is offered by the state taxing authority.
- For Pennsylvania: Submit payment via an ACH credit to the Pennsylvania Department of Revenue. The payment must be received by the settlement date.
- SelectSave.
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