How to Resubmit a Rejected Tax Payment in QuickBooks?

If you see a message in QuickBooks, or you notice a prompt from the state agency or IRS, regarding the rejection of e-payment or e-filed tax, do not worry. Insufficient cash or wrong bank information might cause bank transfer payments to fail.

If you are confused about the tax rejection, then you have arrived at the right place. The article delves deep into the resubmission of rejected tax payments in QuickBooks.

What are the Reasons Behind the Rejection of E-Payment or E-Filing?

The e-payment or the e-filing can be rejected due to the following reasons:

Transmission Issue

You will receive an error message that details the issue and offers guidance on how to fix the transmission issue. If there is a problem when you submit the e-filing or e-payment, it is due to instances such as the Intuit server being down or necessary information being missing.

Agency Rejection

The denied status for an electronic filing or electronic payment will be noted in the history window and the audit trail for the file or payment if the agency rejects the electronic filing or electronic payment.

Along with directions to assist you to fix the issue, the agency often offers the reasons why the file or payment was denied. Before resubmitting, make sure you thoroughly analyze the messages the agency has returned.

The messages are particular to the agency and your circumstance.

How to Handle a Rejected E-Filing?

Step 1: In QuickBooks, Click Payroll Center.

Step 2: To view your e-filing history, Click the View E-filing History link under Related Form Activities.

Step 3: Select the Agency Rejected link.

Step 4: Review the form’s details, the agency’s issue, and solution messages, and the instructions in the E-filing Rejected window. Then, follow the directions.

Step 5: To close the E-filing Rejected window, Click Close.

Step 6: Fix the issues that led to the form’s rejection.

Step 7: Send the payroll tax form again.

How to Handle a Rejected E-Payment?

Step 1: Launch QuickBooks and choose Payroll Center.

Step 2: Click View Epayment History from the Related Payment Activities drop-down menu.

Step 3: Activate the Agency Rejected link.

Step 4: Review the payment details, the issue and solution messages supplied by the agency, and then follow the directions in the E-payment Rejected box.

Step 5: Simply choose Void Rejected E-payment.

Step 6: You can either resend the Epayment or produce a printed liability check by having the responsibility resurface in the Payroll Center.

How to Handle a Rejected Bank Transfer Payment?

1st: Examine the Failed Payment in QuickBooks

The payment’s location in your books will dictate what to do next.

Step 1: After choosing Add New, Select Bank Deposit.

Step 2: Take a look at the QuickBooks Payments section.

Step 3: On the list, Look for the payment. If you see it, it hasn’t yet been deposited. If not, it will be deposited.

2nd: Make a Service Item to Track the Bank Transfer that was Denied

Step 1: Choose Products and Services from the Settings menu.

Step 2: Choose New, then Service.

Step 3: For the name, type “Rejected bank transfer.”

Step 4: Enter the following in the description: Bank transfer payment received; denied by the bank.

Step 5: If the bank deposit has already been made, choose the bank account for the income account that you placed money into. Alternatively, choose undeposited monies for the Income account if you haven’t yet made the bank deposit.

Step 6: Then click Save and Exit.

3rd: Create a New Invoice

To document the payment that was declined, create an invoice. This might sound unusual, but it’s the right course of action in this case. Your income and A/R accounts remain correct if you record them in this manner.

Step 1: Pick + New.

Step 2: Decide on the Invoice.

Step 3: Enter the client whose bank transfer payment had failed.

Step 4: Fill up the invoice using the Rejected bank transfer item you made in the 2nd step.

Step 5: Enter the whole amount of the rejected payment.

Step 6: Verify that Tax is not chosen.

Step 7: Close after selecting Save.

4th: Place the Initial Payment on the Newly Formed Invoice

You must eliminate the payment from the original invoice because it was unsuccessful. Move the declined payment to the next invoice to keep your books organized.

Step 1: Dispatch the invoice with the bank transfer payment that was declined.

Step 2: Open the declined payment by clicking the Payment link.

Step 3: Uncheck the first invoice, then pick the replacement you made in the 3rd step.

Step 4: Then click Save and Exit.

5th: Bill Your Consumer for the Failed Payment Cost

You might wish to charge your customer the fee if you were assessed one for a returned payment.

Step 1: Create the rejected bank transfer fee item first.

Step 2: Choose Products and Services from the Settings menu.

Step 3: Choose New, then Service.

Step 4: You should type “Returned Bank Transfer Fee” in the Name area.

Step 5: Select or add the Returned Bank Transfer Fees income account from the Income account drop-down menu. Alternatively, use an expense account you currently use to monitor your bank costs.

Step 6: Select Save, then click Done.

Add the Item to the Invoice and Send it Again

Step 1: Dispatch the Invoice.

Step 2: Itemize the refunded bank transfer cost.

Step 3: Enter the fee amount that was incurred.

Step 4: Send the invoice again.

The article offers insight into the resubmission of rejected tax payments in QuickBooks. You also get to know about the handling of rejected E-filing and E-payment.

However, if you are unable to follow the steps, then you should reach out to a professional QuickBooks expert.

If you have further queries related to the resubmission of a rejected tax payment in QuickBooks, then you should get in touch with our Dancing Numbers team via LIVE CHAT.

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