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Thursday, April 23, 2015

Outstanding State or Federal ACKs

Updated 4-23-2015

  • As long as the return reached our EFC before midnight of the preparer’s local time, the electronic postmark will reflect the date of April 15, 2015 and will therefore be considered by the IRS as timely filed.
  • Verify acks for all of your outstanding efiles; April 20th is the deadline for re-transmission of rejected returns and extensions that will still be considered as timely efiled. 
  • Returns not extended and not efiled by April 15th can still be efiled until October 15th or beyond, though there could be penalties for non-filing or non-payment of tax owed on those returns. 

The following have outstanding acks older than five days old. We proactively work with the states to clear up these acks.
If you can view the return in the Return Query tool on the support site, then we have the return and no action is needed.

2014 returns
SC and NC- both states have notified vendors of processing delays
DC and MO also
1099s-  outstanding acks from April 16th

2013 returns

2012 returns
Current, with the exception of a small number (less than 20 returns) from various days in the past week.

Wednesday, April 22, 2015

29.10 Program Version available now

Version 29.10 is available now to download.

Version 29.10
April 2015

29.10 is the End of Season Release
Version 29.10 is the last version that TaxWise will release for the primary e-file season. This version will also become the End of Season release. Check the Customer Support Site for updated Individual and Business States and updated modules.

Client Organizers
The Client Organizers have been enabled for TaxWise 2014 to help collect information for your tax year 2015 clients.

Correction for In Progress 5500 Returns

TaxWise has made corrections so that In Progress 5500 Returns will display the Company Name.

Monday, April 20, 2015

Bank Product Ending Dates

Bank Product ending dates are shown below, as of April 20, 2015.
Dates are subject to change and will be updated on this blog article accordingly.

River City Bank
RTs/ERCs:  Will process until the end of the year
Last day for Site Printed Checks:  June 12th
ACH Direct Deposits:  No deadline.  Will process throughout the year
Check Stale date:  June 15th

Refund Advantage 
RTs/ERCs: November 15th  
Last day for Site Printed Checks: December 31st 
ACH Direct Deposits: December 31st                                
Check Stale date:   December 31st 

Republic Bank     
RTs/ERCs: Will process until the last day of e-filing, but will allow a few extra days to fix any rejected applications.                         
Last day for Site Printed Checks:  June 30th 
ACH Direct Deposits: To be determined but likely late fall. 
Check Stale date: checks expire 90 days after they are printed or June 30th for checks printed at the ERO locations.    

TPG, 3Fund and FeeCollect
Dates will be added soon

Weekly Report from Washington, D.C.,(Apr. 20, 2015)

Weekly Report from Washington, D.C.,(Apr. 20, 2015)

Congress was busy during the week of April 13, with the House passing legislation that would repeal the estate tax, provide additional IRS oversight and permanently extend the deduction for state and local sales taxes. The Senate approved legislation that repeals the Medicare sustainable growth rate (SGR) and improves physician payments; President Obama signed the measure on April 16. Lawmakers also introduced legislation to prevent corporate inversions. As the tax-filing season came to a close, IRS Commissioner John Koskinen congratulated tax professionals and the Service’s partners for successfully reaching the April 15, 2015, deadline and apologized for any long delays they may have encountered while attempting to obtain IRS assistance and expressed his appreciation for their hard work.

White House

The president on April 16 signed the Medicare Access and CHIP Reauthorization Act of 2015 (HR 2), also known as the "doc fix" bill, after the Senate approved the legislation by a vote of 92 to 8 on April 14 (TAXDAY, 2015/04/17 C.2). President Obama signed the legislation on April 16. The bill amends Title XVIII of the Social Security Act to repeal the Medicare SGR and strengthen Medicare access by improving physician payments and making other improvements, to reauthorize the Children's Health Insurance Program, and for other purposes. Before being amended by HR 2Code Sec. 6331(h)(3) provided that a continuous IRS levy to collect an unpaid tax liability of a Medicare provider was limited to 30 percent of a qualified payment. Under the enacted measure, the IRS can levy up to 100 percent of a qualified payment owed to a Medicare provider to collect an unpaid tax liability. The Congressional Budget Office (CBO) has estimated that the bill would raise $600 million over 10 years.
Senate Finance Committee Chairman Orrin G. Hatch, R-Utah, and House Ways and Means Committee Chairman Paul Ryan, R-Wis., are asking the Coalition for Fair Effective Tax Rates for their input on statutory tax rates (TAXDAY, 2015/04/14, C.2). In a letter to the coalition, the chairmen said they were looking for ideas on how to reduce the effective tax rate in a manner that would make small businesses more competitive. They added that they were are also seeking input on how to simplify tax filing and tax compliance for small and closely held businesses. Hatch and Ryan said that, although the current administration does not share their vision for tax reform and with President Obama unwilling to reduce individual statutory tax rates, "it is likely that some aspects of tax reform will not be completed until the next administration takes office."
Hatch and Ryan have also asked Koskinen to clarify the tax status of organizations known as "worker centers." They expressed concern in an April 15 letter that some worker centers have engaged in conduct similar to labor organizations, which would disqualify the organizations from receiving a tax-exemption under Code Sec. 501(c)(3) because their benefits accrue to specific employees instead of the general public, suggesting they should be501(c)(5) organizations and donations to them should not qualify for tax deductions.
House and Senate lawmakers on April 16 introduced legislation that would ban federal contracts for companies that move their headquarters overseas in order to avoid paying U.S. taxes, a process known as "inversion"(TAXDAY, 2015/04/17, C.3). Over the last five years, companies have received $1 billion in federal contracts while using the tax loophole. A surge of inversion announcements in 2014 led Democrats in the Senate and House to introduce several different measures to stop the practice. Republicans in both chambers decided not to support the legislation even though similar measures received bipartisan support in the past. According to the Joint Committee on Taxation, inversions could cause the U.S. to lose about $20 billion in tax revenue over the next decade.
House. The House on April 15 overwhelmingly approved, by a bipartisan voice vote, a series of bills dealing with oversight of the IRS (TAXDAY, 2015/04/16, C.1). The bills now move to the Senate, where House Republican leaders also expect Democratic support for the proposals. Ways and Means Oversight Subcommittee Chairman Peter Roskam, R-Ill., said the House was marking April 15, or tax day, "by passing a series of common-sense bills to rein in IRS abuse, protect taxpayer rights and hold agency employees accountable for misconduct."
House lawmakers on April 16 approved a bill (HR 1105) to permanently repeal the estate tax (TAXDAY, 2015/04/17, C.1). The 240-to-179 vote was mainly along party lines. The measure also repeals the generation-skipping transfer (GST) tax for all future transfers. Most Democrats vehemently opposed the measure, charging that it would increase the deficit and mostly favors the wealthy. The vote to repeal the estate tax may be moot, however, as the White House has said the president will veto the bill.
The House on April 16 passed the State & Local Sales Tax Deduction Fairness Bill (HR 622), which would permanently extend the deduction for state and local sales taxes, which expired at the end of 2014 (TAXDAY, 2015/04/17, C.1). The final vote was 272 to 152. The measure is one of some 50 plus "tax extenders" that typically come up for renewal at the end of the year. Ryan said the bill would give people more certainty, instead of waiting each year to see if it is included in the extenders package. The White House said it would veto the measure if it came to the president’s desk for signature because its cost is not offset and would add to long-term deficits.
The individual and employer mandates under the Patient Protection and Affordable Care Act (PPACA) (P.L. 111-148) will continue to disrupt both the health insurance market and the labor market, according to Douglas Holtz-Eakin of the American Action Forum, and former director of the Congressional Budget Office (CBO) (TAXDAY, 2015/04/15, C.3). As the main witness at an April 14 House Ways and Means Subcommittee on Health hearing on the mandates, Holtz-Eakin maintained that there are alternatives, saying, "the individual mandate is not working as envisioned." He recommended: requiring guaranteed renewability of coverage conditioned on maintaining continuous coverage; creation of high-risk pools for those with pre-existing conditions; repealing community rating restrictions under the PPACA; and allowing nonqualified health plans to be sold outside of the Marketplace.
House Ways and Means Oversight Subcommittee Chairman Peter Roskam, R-Ill., announced on April 15 that the subcommittee will hold a hearing on the 2015 tax filing season and general operations at the IRS (TAXDAY, 2015/04/16, C.4). The hearing will take place on Wednesday, April 22, beginning at 10:00 a.m. in Room 1100 of the Longworth House Office Building. Oral testimony will be given by invited witnesses only.
Commissioner’s Statement. IRS Commissioner John Koskinen issued a statement congratulating tax professionals and the Service’s partners for successfully reaching April 15, 2015, which brings an end to the busy 2015 tax return filing season (TAXDAY, 2015/04/16, I.1). He apologized for any long delays they may have encountered while attempting to obtain IRS assistance and expressed his appreciation for their hard work.
By Jeff Carlson and Jennifer Cordaro, Wolters Kluwer News Staff

Thursday, April 16, 2015

Lock In Your Early Renewal Discount

It’s not too soon to start thinking about the 2015 tax return season. As we’re working to ensure that you have the broadest combination of software and services that deliver accurate tax compliance, tax and accounting research and learning resources and workflow management capabilities.

Here’s what you can expect in the TaxWise 2015 Professional Tax Preparation Software:

·         Wide variety of bank product options - Your TaxWise software was designed to function with all the leading bank product providers so that you have the widest variety of options.

·         Instant Error Checking & Real-Time Calculations - Calculations are made instantly with every entry and data flows automatically from supporting forms to the primary form and from federal forms to state forms. TaxWise checks for errors by keystroke-by-keystroke, entry-by-entry and entire return.

·         Integrated solutions - You can decide when to expand your service offerings by delivering capabilities like general ledger, trial balance, after-the-fact payroll, accounts payable, accounts receivable and financial statement reporting functions, Trial Balance, digital document management, banking solutions and research tools.

Lock in your discount today – renew now at

Massachusetts False Negative Rejects- RESOLVED

On April 7th, MA efile experienced a problem that caused approximately 400 returns/extensions (Corporate, Fiduciary, Partnership and Composite) to be incorrectly rejected as false negatives.

Below are the false negative rejects that were issued:

The Form 2 was received with no Amended Flag and an original Form 2 has already been filed.
The maximum number (2) of accepted fiduciary extensions Form M8736 has been reached.
The Form 355x was received with no Amended Flag and an original Form 355x has already been filed.
The maximum number (1) of accepted corporate extensions Form 355-7004 has been reached.
The Form 3 was received with no Amended Flag and an original Form 3 has already been filed.

All of the affected returns/extensions have been correctly processed and you should receive the ack soon.

Wednesday, April 15, 2015

Transmission issue with a particular return- check if PDF attached and optimize the PDF

Problem: You attempt to efile a particular return and encounter transmission errors. Other returns will efile as normal.

The return that will not efile likely contains an attached PDF...and that PDF is too large

Solution: Use Kbase ID 15308 

There is an absolute maximum of 10 MB set by the IRS. However, the practical size limit is based largely on the bandwidth the user has.

If the program cannot transmit the return by the time a timeout occurs, the transmission will fail. That is, the same return will be transmitted successfully on a faster internet connection but might fail on a lesser one.
You can optimize the PDF attachment by using Adobe Acrobat Professional or an online tool usch as
Note: The PDF might have to be optimized twice depending on the file size.

NY Business version 10 for Reject R-1001

NY Business module version 10 is available now for download.

Release Notes shown below:

 a) Corrects calculation error on Form NYC 3L, page 5, Schedule H, line 5.

 a) No change.

 a) No change.      

 a) Corrected an issue causing reject R-1001.

ACK processing speeds, 'sent to EFC' status, efile deadlines


The Return Query may show the return status as “sent to EFC” for much longer than usual on April 15th. The EFC constantly sends returns to the IRS, they are processed as quickly as the IRS can handle the volume.

On April 15th, as return and ACK processing slows down at the IRS, you will see “sent to EFC” date/time for 1-2 hours or longer.  As long as the return reaches our EFC before midnight of the preparer’s local time, the electronic postmark will reflect the date of April 15, 2015 and will therefore be considered by the IRS as timely filed.

Individual E-file Deadline is midnight April 15th, and is based on the tax preparer’s local time. We recommend that you e-file often throughout the day and at least two hours before the deadline to better ensure your returns are processed by the deadline.

Remember that the earlier you efile, the sooner you will receive your ACKS. As the day progresses, IRS and state ACKS are expected to take much longer to return, up to eight hours or longer.
For those returns that you may not complete by the deadline, consider e-filing extensions now to avoid the last-minute rush.

Ignore future dates displayed in Return Query

In the event that you see future dates displayed in Return Query, you can ignore them. 

As the EFC is staging batches of returns to send to IRS, a date is pre-populated and it could be 48 hours in the future. When the efile actually goes to IRS, the true ‘sent to IRS’ date and time stamp are populated. 

As long as the return reaches our EFC before midnight preparer local time, the electronic postmark will reflect the date of April 15, 2015 and will therefore be considered by IRS as timely filed.