I got the same rejected payment message from EFTPS and didn't notice it for about a week and only then because the payment didn't clear checking. I'm glad I found this thread before trying to submit again and generating another EFTPS rejection due to QB issues. I logged onto EFTPS again and created a long-ish password (14 chars) but updated again to 12 characters based on another post. I was able to successfully submit payment. Note that another user posted that EFTPS would not allow an immediate change of password... I did not find this to be the case and was able to effect another update right away, your mileage may vary. Also, I'm still hanging onto desktop QB Pro 2018, so there may be other issues with the latest flavor of desktop that I'm not experiencing yet.
QuickBooks, you have not once, in your many responses since the original post on May 2020, indicated that engineers are working on this issue. And clearly it's an issue that needs updated code or specific EFTPS guidance (like change password every XX months, limit password to XX characters, etc.). You punt the problem to contacting your support team, and based on the follow-up posts here, they have been unable to provide more than band-aids or non-working solutions.
Generally, I've found less than robust support for Desktop QB and an undisguised, continuous push toward the QBO product. I don't know about the rest of you, but I pay over $500/annually just for DIY QB Payroll to pay a single person. QBO with Payroll is absurdly overpriced for a small or micro business. Compared to other players in the software subscription realm (e.g., Microsoft, Adobe), Intuit's subscription prices are sky high for far less robust offerings. I've had issues with QB Desktop that I simply give up on (like, oh, blank PDFs of invoices generated by QB Payments, for one) because I can work around them. But, as others have argued, tax obligations are mission critical and really the sole reason for Intuit's existence.
It's unacceptable for QB to not have engineers ON THIS. Please communicate a clear timeline for resolution.
