Does QB 2007 trade info with the IRS??? - Got penalty notice from IRS

Or perhaps you are nutty. I say jump into the fruit cake.

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Not sure what IRS you deal with but the one I deal with, the federal tax deposits for 941 at least electronically filed are due on or before the 15th of the month after the payroll month. Example the 941 payment was due June

15th for all of the month of May payroll.

There are "weekly depositors" who pay more frequently than monthly based on the date of the payroll. Those employers complete a Schedule B to accompany the 941 which advises IRS of the dates of the payrolls and IRS then knows what dates deposits should have been made.

To my knowledge, the Schedule B is the only means IRS has of knowing the dates of payrolls. 941s and Schedule B can be filed by paper or electronically. I would want a hard copy of anything filed electronically for the files. This is the only way you have of knowing what was reported to the IRS.

The information the IRS received via the paper 941 B and the information the IRS data entry clerk keyed into the database may not be one in the same. Why the OP ventured off into some sort of conspiracy theory about Intuit and the IRS boggles the mind. Someone should hit him in the head with a tightly packed snowball,

So, your client DEVIATED from the regular payroll schedule.

Don't think.

No - QB doesn't communicate anything to the IRS.

No coincidence.

From the IRS website (yes, Google is your friend)

"Lookback period. If you are a Form 941 filer, your deposit schedule for a calendar year is determined from the total taxes (that is, not reduced by any advance EIC payments) reported on line 8 of your Forms 941 in a four-quarter lookback period. The lookback period begins July 1 and ends June 30 as shown in Table 1 below. If you reported $50,000 or less of taxes for the lookback period, you are a monthly schedule depositor; if you reported more than $50,000, you are a semiweekly schedule depositor."

Translation - the IRS uses previously filed information to determine when tax deposits are due.

It wasn't that your client set up his payroll schedule in QB, and then QB informed the IRS. It was that your client informed the IRS of his payroll schedule, via tax returns, and that data matched with QB.

Good point.

FYI, the rules of snowball combat disallow head and groin shots and "loaded" balls (i.e. rocks or ice hidden in the ball).

Play friendly.

Okay, yes hit me in the head with a snowball. Thats fine, but it's usually hot enough where I live so that it will melt before it gets here. Hey I may be way off on this but I just thought it was so strange that yes my client filled in the 941B and listed payroll date as 22nd of the month and they sent a penalty notice saying that the payment was due on the 18th and this just happened to be the date this client had set up as a "scheduled" payroll. I would normally just guess that an IRS person made a mistake but in this day of internet information, it sometimes makes me wonder who is getting what.

The funny thing is that I posted more or less the same post at the QB forum at their own website and not a single person has responded. I would have thought someone would be all over this saying that IRS and QB do not trade information but nothing of the sort has been posted in response to my post. I must say that the IRS notice my client got did have some other wierd things on it, some payments it listed that we couldn't tie out to anything so I suspect the IRS employee was not having a good day and didn't input the information correctly. In the end I decided not to pursue this with the IRS as they assessed no penalty but decided to see what happens, if anything, when my client sends in Quarter #2 941...as an aside IRS also sent him a notice that client overpaid his tax for Qtr #1 of 2007. We reviewed our books and the only thing we can figure out is that they counted one of this payments twice. Not bad eh? Wonder when that will get caught??

Well, there you are. No denial.

What to make of that (nudge, nudge).

Just as soon as you figure out that they missed crediting one of his payments in another quarter and that is what triggered the notice in the first place.

Make of it that IF you use QB assisted payroll or complete payroll, Intuit of COURSE 'trades' info with the IRS - when it pays your taxes.

Other than that... consider that QB does not require an internet access for use. Even conspiracy theorists would have a long trip to connect QB and the IRS.

Yep. Wonder if the client even looked at the quarter he was paying taxes for.

If QB secretly provides data to the IRS, it may also be a secret as to how it does it!

That's good! I think you are on to something.

GC