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Wednesday, January 30, 2013

CO info not displaying correctly on CO 8453


Scenario:  The state tax for CO on the W2 line 17 the amount does not carry correctly to the CO 8453 line 4, it carries the federal wages from the W2 line 1 and line 16.

Solution:  This will be fixed in CO v 3

Note:  This is a display issue and does not affect the calculation of the state return.

RESOLVED: NY Validation Error: -- Claimed Attribute is invalid


Resolved with NY v 2

Symptom: When line 11 of IT-201 displays a negative number it appears that the efile validation is looking for a Decimal when in fact it should be am integer value the following validation error is generated

The 'claimed' attribute is invalid - The value '-6768' is invalid according to its datatype 'Decimal' - The MinInclusive constraint failed.


Solution:  New York released a new e-file schema on 1/28 which addresses this issue.  The change will be made in NY v 2.

Alternative Solution:  You can go ahead and file the 1040 e-file and file the NY e-file once NY v 2 is released.


RESOLVED: CA Validation Error: Last Name Element


Resolved with CA v 3

Scenario:  The return is getting the following CA validation error:

The 'http://www.ftb.ca.gov/efile:LastName' element is invalid - The value 'name-Name' is invalid according to its datatype 'http://www.ftb.ca.gov/efile:CA-PersonLastNameType' - The Pattern constraint failed.

Solution:  This will be corrected in CA v 3

Workaround:  Remove the hyphens out of the last name field.  CA does not allow the hyphen in their e-file schema.  The IRS uses the first four letters of the last name for name control purposes, so removing the hyphens will not trigger an IRS reject.

Tuesday, January 29, 2013

RESOLVED: OH Validation Error: Prior Year Contribution Element


Scenario:  1040 and OH return where there are $values in Box 12 of the W-2 receives the following validation error:


The 'PriorYearUserraContribution' element is invalid - The value '3439' is invalid according to its datatype 'Integer' - The Pattern constraint failed.

The 'PriorYearUserraContribution' element is invalid - The value '3691' is invalid according to its datatype 'Integer' - The Pattern constraint failed.


This can generate up to 4 validation errors per W-2

Solution:  This will be fixed in OH v 2.

Alternative solution:  You can go ahead and create and send the 1040 e-file.  Once we post the update to OH, you can create and send the state.

CT Efiles -- Rejected

Scenario:  You received a CT state reject indicating that your return was filed by an unapproved software vendor.  This is an erroneous reject.

Solution:  Recreate and resend the state e-file

RESOLVED: RI Validation Error: -- Num Fed Exemptions

Resolved: RI Version 2 was delivered

Scenario:  1040 return with RI where the taxpayer has a filing status of single and can be claimed on another person's tax return receives the following validation error:

The 'http://www.irs.gov/efile:NumFedExemptions' element is invalid - The value '' is invalid according to its datatype 'String' - The Pattern constraint failed.

Solution:  This will be corrected in RI v 2

Alternative Solution:  You can go ahead and electronically file the 1040.  Once we have release RI version 2, you can create and electronically file the state.

RESOLVED DE Validation Error: Tax Before Credits Element

RESOLVED:  DE v 2 delivered

Scenario:  1040 and DE return where the taxable income for DE is $0.00 results in the following validation error:

The element 'TaxBeforeCredits' ' has incomplete content. List of possible elements expected: 'SeparateCombinedSpouseAmount, TaxpayerOrJointAmount' '.The element 'TaxBeforeCredits' ' has incomplete content. List of possible elements expected: 'SeparateCombinedSpouseAmount, TaxpayerOrJointAmount' '.

Solution:  This will be corrected in DE v 2.

Alternataive Solution:  You can go ahead and file your 1040 electronically.  You can then file the DE return after we release version 2.

Monday, January 28, 2013

RESOLVED: IA Validation Error: Gross Income Element

Scenario:  You are getting the following validation errors when trying to create an IA e-file:

The element 'GrossIncome' in namespace 'http://www.irs.gov/efile' has incomplete content. List of possible elements expected: 'WagesSalariesTips, Interest, Dividends, AlimonyReceived, BusinessIncome, CapitalGain, OtherGains, IRADistributions, PensionsAnnuities, RentsRoyaltiesPartnership, FarmIncome, UnemploymentCompensation, SocialSecurityBenefits, OtherIncome, GrossIncomeAmt' in namespace 'http://www.irs.gov/efile'.

The element 'NetIncome' in namespace 'http://www.irs.gov/efile' has incomplete content. List of possible elements expected: 'QualifiedPlanPaid, SelfEmploymentTax, HealthInsurancePaid, EarlyWithdrawalSavings, AlimonyPaid, PensionRetirementExclusion, MovingExpenseDeduction, IACapGainDeduction, OtherAdjustments, AdjustmentsTotal, NetIncomeAmt' in namespace 'http://www.irs.gov/efile'.


Solution:   This will be corrected in IA v 2 scheduled for later in the week.  You can go ahead and e-file your federal return and file your state after we deliver IA v 2

IRS Press Release: Education Credits


IRS To Accept Returns Claiming Education Credits by Mid-February

IR-2013-10, Jan. 28, 2013

WASHINGTON - As preparations continue for the Jan. 30 opening of the 2013 filing season for most taxpayers, the Internal Revenue Service announced today that processing of tax returns claiming education credits will begin by the middle of February. 

Taxpayers using Form 8863, Education Credits, can begin filing their tax returns after the IRS updates its processing systems. Form 8863 is used to claim two higher education credits -- the American Opportunity Tax Credit and the Lifetime Learning Credit.

The IRS emphasized that the delayed start will have no impact on taxpayers claiming other education-related tax benefits, such as the tuition and fees deduction and the student loan interest deduction. People otherwise able to file and claiming these benefits can start filing Jan. 30.

As it does every year, the IRS reviews and tests its systems in advance of the opening of the tax season to protect taxpayers from processing errors and refund delays. The IRS discovered during testing that programming modifications are needed to accurately process Forms 8863.  Filers who are otherwise able to file but use the Form 8863 will be able to file by mid-February. No action needs to be taken by the taxpayer or their tax professional.  Typically through the mid-February period, about 3 million tax returns include Form 8863, less than a quarter of those filed during the year.

The IRS remains on track to open the tax season on Jan. 30 for most taxpayers. The Jan. 30 opening includes people claiming the student loan interest deduction on the Form 1040 series or the higher education tuition or fees on Form 8917, Tuition and Fees Deduction. Forms that will be able to be filed later are listed on IRS.gov.

Updated information will be posted on IRS.gov.

Solution Center

We are going to bounce the solution center to move the hosting location of the program update.  You may experience a few minutes of outage on the Solution Center.

AZ Form 8453 -- Obsolete

We are getting several inquiries about AZ Form 8453.  We have confirmed with the state that this form is now obsolete and was not delivered with the AZ state software module

RESOLVED: SC Validation Error: Proration element

Resolved;  SC v 2 has been released

Scenario:  1040 with SC that contains a proration value of 100% on Line 44 of SC Sch NR you receive the following validation error:


The 'Proration' element is invalid - The value '100' is invalid according to its datatype 'Decimal99Type' - The MaxInclusive constraint failed.

Solution:  We have reached out to the state for guidance.  The form allows 100% as a valid option, bu the e-file schema only allows up to 99.9%

RESOLVED: OR Validation Error: Prime Fed Pension Element

Resolved -- OR v 2 delivered

Scenario:  1040 and Oregon with a Federal Pension Income percentage on OR 40 page 1 (Line 17) and you are getting the following validation error:

The 'PrimeFedPensionPer' element is invalid - The value '0.458' is invalid according to its datatype 'ORPercentageType' - The FractionDigits constraint failed.

Solution:  This will be corrected in Oregon V 2

CRC Error when installing TaxWise 27.05


Due to the significant number of customers trying to download the 27.05 update from the Solution Center, we strongly recommend that you choose to "Save" the update rather than "run" the update.

If you choose "run" and the connection times out, you will get the following error.  If you receive the error, download the the update by using the "Save" feature.  Once you download the update, double-click to run it.


"Helps when I post it to the right blog!!!"

Sunday, January 27, 2013

IRS Efile News -- Delayed processing of Form 8863

The IRS announced on an industry call with software vendors participating in the Controlled Launch this morning that they would start rejecting any e-file that contains Form 8863 (Education Credits) effective immediately.

What does this mean for returns that you have already sent to the EFC, but have not been sent to the IRS?

Any return that you have sent to the EFC that has NOT been transmitted to the IRS that contains Form 8863 will be rejected by the IRS with either Reject F1040-419 or F1040A-419 Form 8863 is not being accepted by Modernized e-File (MeF) at this time .

Will the EFC reject any e-file that contains Form 8863 to the ERO instead of sending it to the IRS?

No, we do not crack open the e-files at the EFC, we simply batch them and send them to the IRS.  Any efiles already at the EFC will be transmitted to the IRS.

Will you be issuing an update to the US 1040 module to prevent the e-files from being created?

Yes, we are working on creating US 1040 v 4 that will prevent you from creating an e-file if the return contains Form 8863

What will happen to the e-files that the IRS has already accepted that contained Form 8863?

The accepted e-files that contain Form 8863 will be held for processing by the IRS until internal IRS programming can be made to accomodate the processing of these returns.

Will this impact when the taxpayer refunds are processed for any accepted returns that contain Form 8863?

Yes, the accepted returns are being held, which means they will not be sent to refund processing.

When will the effected returns be processed?

The IRS is working diligently to get the programming in place to process these returns.  They will be issuing a Quick Alert regarding this situation, but cannot commit to a resolution date at this time.,




RESOLVED: IA Validation Error -- Adjustment is Missing


Scenario:  1040 and IA return with Student Loan Interest Deduction on 1040 Wkst 2 and IA Wkst 1, you get the following validation error.

The required attribute 'adjustment' is missing.

Solution:  This will be corrected in a future IA update.

Alternative Solution:  You can go ahead and file the 1040 return and submit the state e-file once an update to IA has been delivered.

Saturday, January 26, 2013

UT Validation Error

Scenario:  The return  type is 1040 with Utah.  The filing status is Head of Household and the preparer enters a daytime telephone number for a spouse.  This causes the following two validation errors.


The element 'TaxpayerName' in namespace 'http://www.irs.gov/efile' has incomplete content. List of possible elements expected: 'FirstName' in namespace 'http://www.irs.gov/efile'.

The 'http://www.irs.gov/efile:TaxpayerSSN' element is invalid - The value '' is invalid according to its datatype 'http://www.irs.gov/efile:SSNType' - The Pattern constraint failed.


Solution:  Remove the spouse's Daytime Phone number on the Main Information Sheet


RESOLVED: CA Validation Error: Computation Method Type

Scenario:  You receive the following validation error when trying to create a CA e-file when there is no tax liability due on the CA return.


The http://ww.ftb.ca.gov\efile:ComputationMethod' element is invalid - The value" is invalid according to its datatype 'http://www.ftb.ca.gov/efile:CA-IncomeTaxComputationMethodType' - The enumeration constraint failed

Solution:  This will be corrected in CA v 2 scheduled for early next week.  

AL 1040 Reject AL40-1000 -- RESOLVED

Resolved:  You can now resend your AL e-files that were rejected for AL40-1000 and your other AL e-files

Scenario:  My Alabama e-files are getting rejected for AL40-1000: Acceptance Validation Software Id is not an approved software vendor.AL40-1000ErrorReserved

Solution:   Hold these returns until we receive further guidance from Alabama.

We are approved to send e-files to Alabama.  This is most likely due to the extended Controlled Launch (HUB testing).  We are reaching out to our contacts at Alabama DOR.  We will update this info once we have contacted Alabama.

E-Files: Get them to the IRS before opening Day

The IRS has extended an invitation to TaxWise to send over 500,000 e-files to the IRS e-file system during their Controlled Launch (i.e. HUB testing) through 5pm EST on Tuesday, January 29th.

We strongly encourage you to take advantage of this opportunity to beat the rush of e-files that will be transmitted to the IRS by software vendors industry wide on Wednesday, January 30th.  We have already received 64 rejects where the taxpayer was shopping tax preparers and their return was already accepted by another ERO.  This also gives you an opportunity to work your rejects prior to opening day.

Below is our Participation schedule (all times are Eastern Time)


  • Saturday, January 26:  10am - 2pm EST
  • Sunday, January 27:  Noon - 5pm EST
  • Monday, January 28:  9am - 5pm EST
  • Tuesday, January 29:  9am - 5pm EST
Note:  Our allocation limit for sending is the smallest on Tuesday as the IRS prepares their system to open for all software vendors on their official opening day on Wednesday, January 30th.  The IRS anticipates receiving millions of e-files on opening day.  Again, we strongly encourage you to take advantage of our opportunity to send over 500,000 e-files prior to the 30th.


RESOLVED SC Validation Error



Resolved;  SC v 2 has been released

Scenario: You receive the following validation error when trying to create efile for SC, 

The element 'Summary' in namespace 'http://www.irs.gov/efile' has incomplete content. List of possible elements expected: 'OverPayment, AmountDue, UseTax' in namespace 'http://www.irs.gov/efile'.


Solution: this is fixed in SC V2 scheduled to go out Monday/Tuesday of next week. let the customer know that it is fixed in SC version 2

Thursday, January 24, 2013

IRS Reject R0000-121


Scenario: You receive IRS Reject R0000-121 The ETIN associated with the Individual submission is not a participating transmitter.

Solution:  Recreate and resend the e-files

Reason:  The batch of returns we submitted during the controlled launch, reached the IRS before our designated time.

This affected approximately 5500 returns.  We have the ability to send e-files via the Controlled Launch through 5 PM today.


Wednesday, January 23, 2013

MoneyClip - Not yet available


The Money ClipSM Visa®Prepaid Card is not active in the applications.  We are in the process of testing the upload process with the processing company.

The tax applications will allow you to select the card option, but you will receive a timeout message when you select the option to Get MoneyClip.

We currently do not have an estimated date to turn on the upload process.

MA Reject 439


We are accepting MA e-files because MA still uses its stand alone system.

Scenario:  You receive MA Reject 439.  How do you correct the reject?

Solution:  No changes are required if this is the only reject.  You can recreate and resend the state e-file.

Reason:  We are not inserting the IP address in the first e-file that you create.  We are inserting it into subsequent e-files.  This will be permanently solved in TaxWise Program update 27.05

Validation Error: Element IRS8379 in Namespace

Scenario:  My return gets the following validation error:

The element 'IRS8379' in namespace 'http://www.irs.gov/efile' has invalid child element 'JointReturnAmtGrp' in namespace 'http://www.irs.gov/efile'. List of possible elements expected: 'InjuredSpouseInformationGrp' in namespace 'http://www.irs.gov/efile'.

Solution:  This will be fixed in US 1040 v 3 scheduled to be delivered this week.

E-files: Early e-file Participation (1/24 3:50 PM )




Update 1/24 3:50 PM EST:

The IRS has requested that we stop sending ND state e-files.  We are turning off the ability for these to come in the door.  If you attempt to send a ND state e-files, you will receive EFC Reject 49
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Update 1/24 2:23 PM EST:

Erroneous business Rule Reject for F1040-068 has been resolved:

The IRS sent notification that this Business Rule has been corrected.  If this is the only reject in the return, you can recreate the e-file and resend it.  If there are other rejects in the return, you will need to correct the other rejects prior to recreating the e-file and resending it.

We will send another large set of e-files to the IRS around 3:00 PM EST.  Once we receive acks back, we will automatically post the acks.


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Update 12:30 PM EST:

We have sent our maximim number of e-files today of 18,000.  We are stepping through the acks to review IRS rejects to see if there are any that are erroneous from the IRS or rejects that we can fix programmatically.  Below are some results.

Top 2 rejects:

IND-041 (3252 rejects)  If the third party designee is marked as Yes in the return, then the third party designee PIN must have a value  (Note:  This is not currently a required element in the IRS Schema, but we are going to make it a required entry with US 1040 v 3 to reduce this code.  We have sent a question to the IRS regarding this reject) 

IND-040 (3140 rejects)  If the third party designee is marked as Yes in the return, then the third party designee phone number must have a value(Note:  This is not currently a required element in the IRS Schema, but we are going to make it a required entry with US 1040 v 3 to reduce this code.  We have sent a question to the IRS regarding this reject) 

500 Series rejects:

R0000-504-01 (695 rejects)  See Knowledge Base Article Reject 504
SEIC-F1040-501-01  (602 rejects) See Knowledge Base Article Reject 501
R0000-500  (299 rejects) See Knowledge Base Article Reject 500

Other rejects:
IND-046 (321 rejects) See Knowledge Base Article Reject IND-046

F8863-010-01 (249 rejects)... We are pulling some of these returns to review them.  The reject indicates that the American Opportunity Credit cannot exceed $2500.

F8885-004 (221 rejects)  The IRS indicates that the filer is not eligible to claim the Health Coverage Tax Credit.  If you feel this is in error, see the phone numbers contained within the detailed reject..  


Erroneous business Rule Reject:

F1040-068 -- This business rule is being triggered in error for taxpayers with the filing status of Single.  The IRS has identified the issue and they are working to resolve it as soon as possible.  (DO NOT resend these returns until further notice)


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Update 8:30 AM EST:
We will begin participating in the controlled launch of e-file today, Wednesday, January 23rd.

We will not be able to send all of the e-files that we have received, but we will be able to send a maximum of 18,000 e-files today.  Our controlled launch window starts at 9:00 this morning.  We will begin by sending small batches of 100 e-files while our test facilitator watches them come through the MeF system.  The IRS takes this opportunity to watch the batch process through their system.  They will be sending us acknowledgements at some point during this process.

Once we receive the acknowledgments, we will walk them through our EFC processes and post them to your electronic mailboxes.  This will allow us to determine the potential reject pattersn, etc.

The IRS asked that we remind all EROs of the following

  • The IRS will not process your tax return before January 30.
  • This means the timeframe for issuing refunds will not begin before January 30. The IRS issues most refunds in less than 21 days from the day they receive your tax return for processing.
  • Even though the IRS issues most refunds in less than 21 days, it’s possible your tax return may require additional review and take longer.
  • Beginning January 30, you can use the improved Where’s My Refund? tool, which this year will provide personalized information about your own tax return.
  • More info: http://www.irs.gov/Refunds/What-to-Expect-for-Refunds-in-2013        


ORIGINAL BLOG
We will begin accepting 1040 e-files in the Electronic Filing Center on Tuesday.  We WIL NOT be allowing you to send state e-files until we complete our first round of early testing with the IRS.

We will be holding the federal 1040 e-files at the EFC until our allotted time to send them to the IRS on Wednesday, January 23rd.  Once the IRS gives us the "OK to send", we will be allowed to transmit up to 18,000 federal 1040 e-files on Wednesday.

We will receive acks back from the IRS and we will pass them to you for review. At that time, you will be able to view your acks.  If the return is IRS rejected, you will be able to correct it and resend it to the EFC.

States
We will NOT be accepting any state e-files until after our initial early testing period on Wednesday.  If you mark a state as "unlinked", create the state e-file and send it, it will receive EFC Reject 49.  I will update the blog as soon as we turn on the EFC to receive state e-files

Banks
As soon as we receive acks back from the IRS, we will process any associated bank apps and send them to the appropriate banks.

Minimum Version to File
Program Update 27.04
US 1040 v 2

Check boxes misaligned on Main Info

Scenario:  The checkboxes on the State and Bank section of the main information sheet are not lined up with the corresponding words.

Solution:  You will need to uninstall and reinstall their US 1040 Module.  The steps to complete this process is in  Knowledge Base Article 13976.

Kbase Article 13976


Monday, January 21, 2013

Sending E-files to the EFC on January 22nd.


You will be able to begin creating e-files on Tuesday, January 22nd.

We will begin accepting 1040 e-files in the Electronic Filing Center on Tuesday.  We WIL NOT be allowing you to send state e-files until we complete our first round of early testing with the IRS.

We will be holding the federal 1040 e-files at the EFC until our allotted time to send them to the IRS on Wednesday, January 23rd.  Once the IRS gives us the "OK to send", we will be allowed to transmit up to 18,000 federal 1040 e-files on Wednesday.

We will receive acks back from the IRS and we will pass them to you for review. At that time, you will be able to view your acks.  If the return is IRS rejected, you will be able to correct it and resend it to the EFC.

States
We will NOT be accepting any state e-files until after our initial early testing period on Wednesday.  If you mark a state as "unlinked", create the state e-file and send it, it will receive EFC Reject 49.  I will update the blog as soon as we turn on the EFC to receive state e-files

Banks
As soon as we receive acks back from the IRS, we will process any associated bank apps and send them to the appropriate banks.

Minimum Version to File
Program Update 27.04
US 1040 v 2

Friday, January 18, 2013

Tax Form Defaults not working after US Module 2


Problem;  My Tax Form Default is blank after the updates to US 1040 v2.  What do I need to do?

Solution:  The IRS removed several lines from various forms such as the 8949, Schedule C, Shedule C-EZ, 5405, Schedule E, and 8863.  If you made the line that they removed required (red) in your defaults, the default is no longer compatible and will not open.  

Action Required:  You will have to create a new tax form default.

Problem:  When I open my returns, they are blank.  If I create a new default, will it populate the data?

Solution:  No, the only way to get into the returns is to delete the return and create a new return.

Monday, January 14, 2013

Program Update 27.03 -- RESOLVED

Update

TaxWise Program Update 27.03 has been signed and made available again on the TaxWise Solution Center
-----------------------------------------

We have temporarily unpublished the 27.03 Program Update.  There is nothing wrong with the contents of the update, but we need to sign the executable so it does not pop up the security warning messages.

This will kick off a 2nd round of Program Update Notifications, so do not be alarmed when you see the 2nd notice.

Friday, January 11, 2013

US 1040 v 1 -- Delivery Schedule


We are tentatively scheduled to apply US 1040 v 1 to the TaxWise Solution Center on Monday, January 14th.   We will also be posting version 2 of all bank modules at the same time.  You MUST download version 2 of the banks and US 1040 v 1 prior to opening any existing returns.

The US 1040 v 1 will NOT allow you to create an electronic file.  We are currently scheduled to turn on the ability to create an e-file on Tuesday, January 22nd.   You will see the following diagnostics message prior to January 22, 2013:

The diagnostics error is:
Due to the tax law changes from the American Taxpayer Relief Act of 2012, IRS has delayed electronic filing for individual tax returns.  Tax returns will also not be processed if submitted on paper.  Electronic filing of individual tax returns will be enabled on January 22, 2013. (395)

You will be able to print approved IRS laser forms.

Note:  This also means that you will not be able to create an e-file in Training user or any user assigned to the Training group and send it to the Training EFC until January 22, 2013.

Thursday, January 10, 2013

IRS Definition of Stockpiling


We are beginning to get a lot of inquiries regarding the IRS definition of stockpiling.  IRS Publication 1345 defines stockpiling.  SFS comments are in blue


An ERO must ensure that stockpiling of returns does not occur at its offices.  Stockpiling is defined as one of  the following two conditions:

(1) collecting returns from taxpayers or from another Authorized IRS e-file provider prior to official acceptance in the IRS e-file program (this is prior to your EFIN being approved by the IRS); or

(2) after official acceptance to participate in IRS e-file (EFIN has been approved by the IRS), stockpiling refers to waiting more than three calendar days to submit the return to the IRS once the ERO has all necessary informaton for origination (of the return).

Exception to the 3-day stockpiling rule

The IRS does not consider returns held prior to the date that it (IRS) accepts transmission of electronic returns as stockpiled.  This includes when the IRS is not able to accept specific returns, forms, or schedules until a date later than the start-up of IRS e-file due to constraints such as late legislation (IRS) programming issues, etc.  EROs must advise taxpayers that it cannot transmit returns to the IRS until the date the IRS accepts transmission of electronic returns.  (Therefore the 3 day calendar period mentioined above does not start until January 30th for most forms.)

click this link to the IRS site

Wednesday, January 9, 2013

Business e-file -- Must be at Module 1

You must download the appropriate business module version 1 from the Solution Center.
1120 v 1
1120S v 1
1065 v 1

You can verify your version by going to Help>View Authorization

Remember:  You can only submit the 7004 electronically until further instructions from the IRS

If you submit the extension with a version less than version 1 of the business modules, you will receive EFC Reject 38

Tuesday, January 8, 2013

IRS Delays the start of e-file


IR-2013-2, Jan. 8, 2013

WASHINGTON — Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and begin processing individual income tax returns on Jan. 30.

The IRS will begin accepting tax returns on that date after updating forms and completing programming and testing of its processing systems. This will reflect the bulk of the late tax law changes enacted Jan. 2. The announcement means that the vast majority of tax filers -- more than 120 million households -- should be able to start filing tax returns starting Jan 30.

The IRS estimates that remaining households will be able to start filing in late February or into March because of the need for more extensive form and processing systems changes. This group includes people claiming residential energy credits, depreciation of property or general business credits. Most of those in this group file more complex tax returns and typically file closer to the April 15 deadline or obtain an extension.

“We have worked hard to open tax season as soon as possible,” IRS Acting Commissioner Steven T. Miller said. “This date ensures we have the time we need to update and test our processing systems.”

The IRS will not process paper tax returns before the anticipated Jan. 30 opening date. There is no advantage to filing on paper before the opening date, and taxpayers will receive their tax refunds much faster by using e-file with direct deposit.

“The best option for taxpayers is to file electronically,” Miller said.

The opening of the filing season follows passage by Congress of an extensive set of tax changes in ATRA on Jan. 1, 2013, with many affecting tax returns for 2012. While the IRS worked to anticipate the late tax law changes as much as possible, the final law required that the IRS update forms and instructions as well as make critical processing system adjustments before it can begin accepting tax returns.

The IRS originally planned to open electronic filing this year on Jan. 22; more than 80 percent of taxpayers filed electronically last year.

Who Can File Starting Jan. 30?

The IRS anticipates that the vast majority of all taxpayers can file starting Jan. 30, regardless of whether they file electronically or on paper. The IRS will be able to accept tax returns affected by the late Alternative Minimum Tax (AMT) patch as well as the three major “extender” provisions for people claiming the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.

Who Can’t File Until Later?

There are several forms affected by the late legislation that require more extensive programming and testing of IRS systems. The IRS hopes to begin accepting tax returns including these tax forms between late February and into March; a specific date will be announced in the near future.

The key forms that require more extensive programming changes include Form 5695 (Residential Energy Credits), Form 4562 (Depreciation and Amortization) and Form 3800 (General Business Credit). A full listing of the forms that won’t be accepted until later is available on IRS.gov.

As part of this effort, the IRS will be working closely with the tax software industry and tax professional community to minimize delays and ensure as smooth a tax season as possible under the circumstances.

---------------------------------------------
Updated 1-9-2013 9:30 AM: The following link list the forms that the IRS will not accept when e-file opens on the 30th.

also refer to the SFS Fiscal Cliff informational page at



Sunday, January 6, 2013

IRS Delays the start of Business e-file


The IRS issued the following Quick Alert delaying the start of the current year business e-files for the 1120, 1120S and 1065.


The IRS continues to review the details and impact of the new tax law signed this week, but a number of these provisions will require changing forms and updating our processing systems involving non-1040 business returns. As a result, electronic filing of many business returns will be delayed while we update forms, related instructions and corresponding systems. This delay is not expected to significantly impact business filers since most of these returns with reporting periods ending Dec. 31, 2012, are not due until March or April 2013, depending on the form.

The IRS will not accept these business tax returns for processing through MeF at this time*:
§ All 2012 tax year business forms (other than Forms 2290 and 7004)
§ Form 8849, Schedule 3 - Certain Fuel Mixtures and the Alternative Fuel Credit
§ Form 990 series (Tax Exempt tax returns)



We will share additional information on when we can accept the remaining 2012 tax year business forms as soon as it becomes available. More information will also be available soon regarding 2012 individual 1040 tax returns impacted by this week’s legislation.

Note: Business tax returns not processable through MeF at this time will also not be processed if submitted on paper.


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We will open the SFS Electronic Filing Center to receive prior year e-files (2010 and 2011) on Monday, January 7th.  

TaxWise is currently scheduled to release TaxWise update 27.02 and version 1 of the 1120, 1120S and 1065 business modules.  We will activate e-file for Form 7004 (Extension of Time to File) 

Friday, January 4, 2013

IRS Delays 94X e-filing -- RESOLVED


Update 1/4/2013:

The IRS is now accepting 94X e-files.  We have resent all of our original batches and we are sending them as we receive them.  We have not received any acknowledgments yet.  Once we do, we will post them to your electronic mailbox.

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Original Blog Entry:

The IRS issues a Quick Alert stating the following:

The Electronic Management System at the Enterprise Computing center located in Memphis, TN is currently experiencing problems.

A QuickAlert will be issued when the system is available. We apologize for any inconvenience this may cause you.
The EFC is still accepting the 94X returns and will hold them until we get information that the system is accepting e-files.
If you have already sent 94X returns, they will not receive an acknowledgement until the IRS system comes back online.  We will have to resend all 94X returns once the system comes back up.

Thursday, January 3, 2013

Pennsylvania e-file information


We have received notification from Pennsylvania that they will not accept any state e-files until January 22, 2013.

PA1040 -- Originally scheduled for 1/22
PA1120 -- Originally scheduled for 1/7 moved to 1/22
PA1120S -- Originally scheduled for 1/7 moved to 1/22
PA1065 -- Originally scheduled for 1/7 moved to 1/22