Update 3/16/2021: We are receiving many emails on how to handle these changes in the software. Please understand that even though the IRS made a post of how to handle this on the 1040, we are still waiting for the IRS to issue instruction changes for the purposes of calculating the changes in the software and for electronic filing. If you are more comfortable waiting to file these returns, we recommend you create a return tag. As of today, we do not know how the IRS is going to handle previously filed returns with Unemployment or how they are going to handle returns filed between the passing of the Act and their implementation plans.
Now that the Act is signed, the IRS will interpret the Act and issue instructions on how it should be handled on new returns and on returns already electronically filed.
Once we get guidance, we do not believe it will take long to make changes to the software. We are already being proactive and creating some reports that will allow sites to identify returns that have a 1099G in case they need to revisit them. The excess payments for PTC is already on the Site Production Detail report in the event those returns need to be revisited. We strongly recommend you wait until we receive clarification and guidance from the IRS before making any changes to existing returns or changing how you prepare new returns.
We, as a software vendor, have already had calls with the IRS. They are committed to working closely with all vendors to get the appropriate messaging and instructions out as soon as they know them.
The National Association of Tax Professionals (NATP) has published an excellent summary of the American Rescue Act. Click here to view their summary.
IRS Statement regarding the American Rescue Act. Click here to view statement
IRS Coronavirus page. Click here to view latest Coronavirus information