Pro Online:

The IRS has issued guidance on resolving Reject Code: F1040-071-05. In order for the return to be accepted, the IRS recommends preparers take the following steps before retransmitting these returns:

TaxSlayer Online Program

In 2020 Pro Online, open the return and take the following steps:

1.  Add a $1 Capital Gain entry on Schedule D

Navigate to Federal Section > Income > Capital Gains and Losses > Additional Capital Gains Distributions > Enter $1 in the Additional Capital Gains Distributions field.

2.  Add a -$1 Other Income entry on Schedule 1 with the description BR1

Navigate to Federal Section > Income > Less Common Income > Other Income Not Reported Elsewhere > Enter BR1 for the description of other income > Enter -1 in the amount of other income field.

*Do not mark the Earned income box.

For a list of returns that rejected with Reject Code: F1040-071-05, select Rejected Clients from the Welcome Menu of Pro Online. The list can be sorted using the up and down arrows in the Reject Information column.

**Please note that this guidance was issued by the IRS via an Industry Call

Attention:  Return Transmitters and Authorized IRS e-file Providers/EROs

We identified a delay in processing Form 1040 balance due, Form 1040-X amended, and Form 1040-ES estimated tax payment requests submitted via Modernized e-File. The issue has been resolved, and pending payments are being processed. The taxpayer’s account will be credited with the original requested payment date(s). Taxpayers should not re-submit these payments.

If a taxpayer re-submitted  any of these payment requests due to the delay in processing they may cancel them by calling 1-888-353-4537. Cancellation requests must be received no later than 11:59 p.m. Eastern time, at least two business days prior to the scheduled payment date.

We apologize for any inconvenience this may have caused.

The IRS has been in contact with industry regarding reports of not withdrawing balance due via direct debit.  This is happening industry wide and the IRS is working diligently to resolve this.  We will post additional information as we receive it from the IRS.

Beginning Friday, April 16th, TaxSlayer VITA/TCE support will have the following hours of operation:

• Monday – Friday: 8am – 5pm ET
• Saturday, May 8th: 9am – 5pm ET
• Saturday, May 15th: 9am – 5pm ET

Georgia did not adopt the American Rescue Plan and all unemployment is taxable to GA.   Changes have been made in the software to reflect this decision.  GA is asking that any returns already filed claiming the exclusion be amended to add back the exclusion amount.  This could potentially have a negative impact on the taxpayer return resulting in a repayment for returns filed with the American Rescue Act federal exclusion.

How do I identify these returns:  Navigate to Reports>> Management Reports>>Pro Web returns – Detailed Returns Report.

Note:  We have a pending issue where the accepted state PDF is not generating from client status. We are in the final phases of testing for this.

IR-2021-84, April 9, 2021

WASHINGTON — The American Rescue Plan Act of 2021 suspends the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of the Premium Tax Credit (excess APTC) for tax year 2020. A taxpayer’s excess APTC is the amount by which the taxpayer’s advance payments of the Premium Tax Credit (APTC) exceed his or her Premium Tax Credit (PTC).

The Internal Revenue Service announced today that taxpayers with excess APTC for 2020 are not required to file Form 8962, Premium Tax Credit, or report an excess advance Premium Tax Credit repayment on their 2020 Form 1040 or Form 1040-SR, Schedule 2, Line 2, when they file.

Eligible taxpayers may claim a PTC for health insurance coverage in a qualified health plan purchased through a Health Insurance Marketplace. Taxpayers use Form 8962, Premium Tax Credit to figure the amount of their PTC and reconcile it with their APTC. This computation lets taxpayers know whether they must increase their tax liability by all or a portion of their excess APTC, called an excess advance Premium Tax Credit repayment, or may claim a net PTC.

Taxpayers can check with their tax professional or use tax software to figure the amount of allowable PTC and reconcile it with APTC received using the information from Form 1095-A, Health Insurance Marketplace Statement.

The process remains unchanged for taxpayers claiming a net PTC for 2020. They must file Form 8962 when they file their 2020 tax return. See the Instructions for Form 8962 for more information. Taxpayers claiming a net PTC should respond to an IRS notice asking for more information to finish processing their tax return.

Taxpayers who have already filed their 2020 tax return and who have excess APTC for 2020 do not need to file an amended tax return or contact the IRS. The IRS will reduce the excess APTC repayment amount to zero with no further action needed by the taxpayer. The IRS will reimburse people who have already repaid any excess advance Premium Tax Credit on their 2020 tax return. Taxpayers who received a letter about a missing Form 8962 should disregard the letter if they have excess APTC for 2020. The IRS will process tax returns without Form 8962 for tax year 2020 by reducing the excess advance premium tax credit repayment amount to zero.

Again, IRS is taking steps to reimburse people who filed Form 8962, reported, and paid an excess advance Premium Tax Credit repayment amount with their 2020 tax return before the recent legislative changes were made. Taxpayers in this situation should not file an amended return solely to get a refund of this amount. The IRS will provide more details on IRS.gov. There is no need to file an amended tax return or contact the IRS.

As a reminder, this change applies only to reconciling tax year 2020 APTC. Taxpayers who received the benefit of APTC prior to 2020 must file Form 8962 to reconcile their APTC and PTC for the pre-2020 year when they file their federal income tax return even if they otherwise are not required to file a tax return for that year. The IRS continues to process prior year tax returns and correspond for missing information. If the IRS sends a letter about a 2019 Form 8962, we need more information from the taxpayer to finish processing their tax return. Taxpayers should respond to the letter so that the IRS can finish processing the tax return and, if applicable, issue any refund the taxpayer may be due.

See the  Form 8962, Premium Tax Credit and Fact Sheet 2021-08, More details about changes for taxpayers who received advance payments of the 2020 Premium Tax Credit.

What to do if you received unemployment compensation in Utah during 2020

Under the American Rescue Plan enacted on March 11, 2021, unemployment compensation up to $10,200 paid in 2020 is excluded from federal adjusted gross income. This exclusion applies for those with a federal adjusted gross income which is less than $150,000. Utah law generally conforms to the federal treatment of unemployment compensation. If you received unemployment compensation in Utah during 2020 please do the following:

If you have not yet filed your federal and Utah returns: First, ensure you have the most updated forms and instructions and file your returns as normal. The unemployment compensation that is excluded for federal tax purposes will automatically be excluded for Utah tax purposes.

If you have already filed your federal and Utah returns: Do not file an amended Utah return to exclude any unemployment compensation at this time. The Utah State Tax Commission is exploring options to obtain the necessary information directly from the Internal Revenue Service to adjust your return and process a refund automatically. If it becomes necessary for you to take any action related to the exclusion of your unemployment compensation, additional instruction will be provided here after August 1, 2021.

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