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IRS E-News: Missouri Storm Victims Tax Relief

Tax Relief for Victims of Severe Storms, Tornadoes, Straight-line Winds, and Flooding in Missouri

MO-2017-01, June 6, 2017

Missouri — Victims of the severe storms, tornadoes, straight-line winds, and flooding that took place beginning on April 28, 2017 in parts of Missouri may qualify for tax relief from the Internal Revenue Service.

The President has declared that a major disaster exists in the State of Missouri. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in Missouri will receive tax relief.

Individuals who reside or have a business in the following counties: Bollinger, Butler, Carter, Douglas, Dunklin, Franklin, Gasconade, Howell, Jasper, Jefferson, Madison, Maries, McDonald, Newton, Oregon, Osage, Ozark, Pemiscot, Phelps, Pulaski, Reynolds, Ripley, Shannon, St. Louis, Stone, Taney, and Texas may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after April 28, 2017, and before August 31, 2017, are granted additional time to file through August 31, 2017. This includes the estimated tax payment due on June 15, 2017 and the quarterly payroll tax returns due on April 30, 2017 and July 31, 2017.  Affected taxpayers that have an estimated income tax payment originally due on or after April 28, 2017, and before August 31, 2017, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before August 31, 2017.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitutes a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area that lost their life or was injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until August 31, 2017, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after April 28, 2017, and before August 31, 2017. Affected taxpayers that have an estimated income tax payment originally due on or after April 28, 2017, and before August 31, 2017, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before August 31, 2017 The IRS also gives affected taxpayers until August 31, 2017 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after April 28, 2017, and before August 31, 2017.

This relief also includes the filing of Form 5500 series returns, (that were required to be filed on or after April 28, 2017, and before, August 31, 2017 in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

Unless an act is specifically listed in Rev. Proc. 2007-56, The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after April 28, 2017, and before May 15, 2017, will be abated as long as the tax deposits were made by May 15, 2017.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year. See Publication 547 for details.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on a 2016 return should put the Disaster Designation, “Missouri, Severe Storms, Tornadoes, Straight-line Winds, and Flooding,” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation  “Missouri, Severe Storms, Tornadoes, Straight-line Winds, and Flooding” in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-829-3676. The IRS toll-free number for general tax questions is 800-829-1040.

Blog Posted 06/12/2017     7:59 PM EST

MI Acknowledgements — Updated information from Michigan

Update 06/06/2017  3:32 PM EDT

We received notification that Michigan has resolved their issues processing returns and have returned to normal processing.

~~~  Original Blog Post (but with corrected post date of the 5th)

We received the following information MI -1040 MeF processing Notice

Michigan is currently experiencing issues processing returns retrieved from the IRS since May 31st.  They hope to have the issues resolved by Tuesday, June 6th.

Blog Posted 06/05/2017   5:01 PM EDT

Delay in Federal/State Acknowledgements — Updated Information

5/9/2017 — 5:26 PM EDT Updated Information

We have submitted all 2016 returns that were still in the “Transmitted” status and have resolved the issue for future submissions.  We are in the process of transmitting the 2015 and 2014 returns that are still in the “Transmitted” status.  No action is required to resend these.

~~  Original Blog Post ~~~

5/9/2017 – 10:18am EDT

We have received reports from sites that have returns still in the “Transmitted” status dated back to as early as May 4th and 5th. This is for years 2014, 2015, and 2016. We are currently looking into these reports to see where any issue may lie. At this time, please do not resubmit any returns that are still in “Transmitted” status. More updates will be provided as they become available.

Federal Reject Code IND-202 Update (4/26/17) – RESOLVED

4/27/2017 – 11:40am EDT

The issue causing Federal Reject Code IND-202 has been corrected and is now live. For any returns at your site that have been recently rejected for IND-202, please go into each return and resubmit at your earliest convenience.

4/27/2017 – 8:13am EDT

The deploy this morning did not correct the issue with the Vendor Control Number consistently being included in the return submission. Our developers are continuing to investigate. We will provide updates as they become available.

4/26/2017 – 2:48pm EDT

We received reports today (4/26/17) of returns being rejected for the Vendor Control Number not being included in the return submission (Federal Reject Code IND-202). Our developers have identified and corrected the issue to ensure the Vendor Control Number is always being included in the submission. The fix is expected to be pushed tomorrow morning (4/27/17).

On the morning of April 27th, after we confirm the fix is live, we will update this blog post to provide users with the next steps so impacted returns can be resubmitted.

IRS Reject Codes IND-0195, IND-0196, and IND-202 — Updated Information

4:02 PM EDT — The issue causing the below reject codes has been resolved.  You will need to open the return to refresh the e-file.  At this point, you can select Save and Transmit to the IRS from the submission page

3:00 PM EDT — We will be making a change that will allow you to resubmit these returns at 3:15 EDT.  You may see a brief interruption of service depending on what you are doing in the return at this time.  Once we make the change we will send a test submission and update the blog post.

4/20/2017 – 1:43pm EDT

We are receiving reports of a small percentage of returns being rejected by the IRS for Reject Codes IND-0195, 0196, and 202 as outlined below. Our developers are looking into these reject codes and we will update this post once we know more.

Direct Debit – Future Date Unavailable

When transmitting returns with an amount owed to the IRS and/or state, and selecting Direct Debit, you will see the below message displayed. You will be unable to request a future date for the amount owed to be debited from the bank account provided. Direct Debit returns will be transmitted with the current date listed to process the payment.

If the taxpayer does not wish to initiate their Federal payment when their return is filed, please choose “Mail Payment” to submit the return electronically but will allow the taxpayer to mail in their payment with a voucher or make a payment online via IRS.gov. If filing a state return and the taxpayer does not wish to initiate their payment when their return is filed, please select “Electronic State Balance Due” when choosing the State Return Type. The taxpayer can then mail in their payment to the state or make an online payment from their state’s DOR website if that option is available.

California Reject Code R0000-065 *4/11/2017 Update*

4/11/2017 – 5:45pm EDT

We apologize for the delay in updating this post. The fix took longer than expected. At this time, sites impacted with CA Reject Code R0000-065 can follow the protocols at their sites to resubmit these returns. Be sure to submit these CA returns as State-Only if their Federal return has previously been accepted.

4/7/2017 – 9:00am EDT

The fix is anticipated to be pushed live Monday morning, April 10th. Currently, CA returns with Form 3514 (CA EITC) and Form 8455 (Direct Debit authorization) are receiving CA Reject Code R0000-065. To avoid further CA rejections at your site, we ask that CA returns with CA EITC (Form 3514) and/or Direct Debit selected as the return type (Form 8455) be held until Monday morning. However, if a CA return does not have EITC but does have an amount owed to the state, you can select state return type “Electronic State Balance Due” to avoid CA Reject R0000-065. The taxpayer would be advised to mail in their CA amount owed to the state.

4/3/17 – 10:45am EDT

We have seen additional CA returns rejected that did not receive CA EITC. The fix is currently in testing. At this time, if you receive CA Reject R0000-065, please do not resubmit until we have posted that the issue has been resolved.

3/31/17 – 4:50pm EDT

It has been determined Form 3514, when applicable to a CA return (CA EITC), was not being included in the document count when transmitting. For this reason, CA was rejecting these returns. The fix is currently in testing and is set to pushed live early next week. We will update this post once the fix is live and CA returns with EITC can be resubmitted.

If your site has CA returns not receiving CA EITC requiring Form 3514, they can be transmitted at any time as they are not impacted.

3/31/17 – 8:09am EDT

We have received reports of some sites filing CA returns receiving CA Reject Code R0000-065.

“The total number of documents contained within the return [CA-ReturnData] must match the document count attribute [documentCnt] contained within the specific return [CA-ReturnData] element, as computed by FTB.”

We are currently looking into this reject code to determine where the issue lies. We recommend holding impacted CA returns at this time to avoid further rejections. We will provide an update as additional information is available.

E-filing: Prior Year Validation Error for State Identification (RESOLVED)

4/3/2017 – 12:22pm EDT

The issue with prior year submissions receiving the State ID Validation Error has been resolved. At this time, you can resubmit the impacted 2015 returns following your normal procedures at your site.

3/31/17 – 9:11am EDT

Some 2015 e-files are still receiving the State ID Validation Error. We recommending holding these impacted returns at this time. We will post additional information as it becomes available.

3/30/17 – 3:35pm EDT

When e-filing 2015 tax returns, many of you have received this Validation Error:

“The ‘http://www.irs.gov/efile:DrvrLcnsOrStateIssdIdIssDt’ element is invalid – The value ‘0001-01-01’ is invalid according to its datatype ‘http://www.irs.gov/efile:DateType’ – The Pattern constraint failed.”

Our developers have identified and resolved the issue causing the above Validation Error when e-filing 2015 returns. The fix will be pushed out tomorrow (3/31/17) morning at 8am EDT. We will update this post once we confirm the fix is live.

At this time, we recommend holding 2015 e-files until confirmation of the deploy has been posted.

IRS Reject 202 — Options for resending

If you have any outstanding Reject 202 returns, you can resend them.  There are two ways to resend these returns:

(1) Select and resend them all at one time by going to:

  • Transmissions
  • Selecting Add Returns
  • Select the returns that were rejected for 202
  • Send to the IRS

Note:  You do not have to open the return prior to sending it again.

(2) You can open the returns and send them from inside the return, if you want to verify anything prior to sending them.

Blog Posted 03/22/2017     7:47 AM EST

 

 

Federal Reject Code IND 202 — Updated Information

Update:  You can now resend these returns.  Open each return (no changes required) and then you can either send from the Submission page or Add them to your Transmission page.


We are receiving reports of returns being rejected for Federal Reject Code IND-202 – ‘VendorControlNum’ in ‘FilinSecurityInformation’ in the Return Header must have a value.

Our development team is currently looking into this reject code. At this time there is no additional action on your end. We will provide updates to this blog as information becomes available.

Blog Posted 03/17/2017      7:37 AM EST