The base product provides several rules to manage payments related to a tax form. This section describes the functionality provided for processing payments with forms.
The rules provided by the product cater for different ways of processing payments.
Payment may be received before the form is processed. This may occur when an annual filer is required to pay quarterly estimated tax payments during the filing year prior to filing. This may also occur when a payment is received with the form but is separated for processing and is posted prior to processing and posting the form. The system provides payment transfer rules that attempt to identify existing payments for the taxpayer and link them to the form.
Many implementations that receive payments with the tax form do not separate the payment for processing but rather create the payment as part of the form processing. The base product provides the posting rule Create Payment to perform this logic. Creating the payment at posting time satisfies most scenarios. However, what happens when the form suspends or must wait for information or gets canceled prior to posting? Payments received with forms must be immediately captured in the system, regardless of what happens to the form. If a form suspends or waits for information or gets canceled, the associated payment should be created in the system anyway. If the obligation is already identified when the form suspends or waits, the payment will be applied to the obligation. Otherwise, the payment will be created for either an excess credit obligation (if the system is configured to do so and an account is identified on the form) or the suspense obligation (from the related tender controls' tender source). When the form subsequently posts, the suspended payment will be transferred to the obligation identified on the form.
The following points describe the base payment rules at a high level.
Create Payment (C1-CreatePayment). This rule creates a frozen payment for a tax form when the form indicates a payment amount. It should be plugged in for the posting, suspense, waiting for information and canceled rule events. As described in the overview, the rule's algorithm posts the payment to an excess credit obligation or a suspense obligation if the form's obligation or account has not been determined.
Transfer Payments to Form’s Obligation (C1-TransferPmtToFormObligation). This rule is provided to transfer an existing payment currently posted to either an excess credit obligation or a suspense obligation to the obligation that is identified on the tax form. This rule should be plugged into the posting rule event. This rule is designed to redirect payments that fall into the following categories:
Payments that were created when the form suspended or waited for information.
Payments from a previous ‘transfer to’ form that were transferred to a suspense obligation.
Payments that were processed before the form was processed using a set of distribution rules referencing document locator number, taxpayer ID, tax type and revenue period.
Transfer Payments Using Form References (C1-TransferPmtUsingFormRef). This rule is provided to transfer an existing payment that was created prior to form processing and is currently posted to either an excess credit obligation or a suspense obligation to the obligation that is identified on the tax form. This rule should be plugged into the posting rule event. The rule’s algorithm is designed to identify payments that should be redirected to the form by matching characteristic values on the payments to payment reference details on the form. The rule supports the following sources of payment reference information on the form:
Document Locator Number
Taxpayer ID Number
Tax Type
Revenue Period
Form Line
Move Payment to Suspense (C1-TransferPmtToSuspense). This rule is provided to transfer any existing payments for tax forms to a suspense obligation. This rule should be plugged in as transfer and canceled rule events. Note that the rule is needed in the canceled rule event to cater for forms that may have gone into suspense or waiting for information where the account or obligation had already been known.
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