Software vendors received the below message from MA.
“Please be advised that on Monday, May 3, we had a systemic issue which did not allow us to acknowledge some returns (all tax types). This issue is being fixed and the missing acknowledgements are scheduled to be sent out next Tuesday, May 11.“
Message from Ohio sent to all software providers.
“We had a population of 200 submissions from April 14, 2021 that were processed but unfortunately acknowledgements were not sent. Our tech team has corrected the issue and those missing acknowledgements are scheduled to go out tonight.“
The American Rescue Plan Act of 2021 excludes from income the first $10,200 in unemployment compensation received in 2020 per taxpayer on their 2020 tax return. The new provision applies to taxpayers with an AGI of less than $150,000. The IRS has recently released a new unemployment compensation exclusion worksheet and updated instructions on how to file 2020 tax returns that contain unemployment income.
The exclusion amount calculated on the worksheet flows back to Schedule 1 (Form 1040), line 8. UCE will print on the line next to line 8 identifying the amount as the unemployment compensation exclusion.
Returns filed prior to the release of the Federal Update in TaxSlayer Pro will automatically re-calculate to exclude the non-taxable portion of unemployment income. This is important – Please make sure you have a copy of the originally filed federal and state return before you open these returns. The original copy of the federal tax return and the state return will be needed to plug in the original column on the Amended federal and state forms once the IRS gives guidance on if or when an amended return needs to be filed. The original return can be accessed from Client List by using the Tools dropdown to access “Client Status”. Scroll down the Client Status page to locate the Federal transmission. The left print icon, when clicked, will open a new window that includes the original Federal transmission.
Update 3/31/2021: The IRS has disabled the business rule that generates this reject. You can now resubmit any returns rejected for this business rule
Even though the filing season has been extended to May 17th, the following IRS business rule is still active.
Scenario: My return has a balance due and the taxpayer wants to have it direct debited after 4/15/2021
Result: The return will get rejected for FPYMT-072-01 (If the return is received on or before the due date of the return, then the “RequestdPaymentDt” in the IRS Payment record must be on the due date or before the due date.
The IRS has disabled this business rule. If you have any returns rejected for this reason, you can transmit them.
Your taxpayer will receive this reject in the scenario where UCE wipes out the income, but they had federal withholding on the 1099-G.
We recommend you hold these returns until the IRS updates the business rule to allow these returns to come in electronically. We do not have a date when the IRS will be making the adjustment to their business rules.
We received the below message from VT when asked if they were experiencing any issues in sending acks. As additional information is provided, we will update this post.
3/19/2021
Update from Colorado.
“Our developers are testing the solution for the MeF acknowledgments that were not generated and sent for a few days earlier this month. Hopefully the solution will be migrated this evening and acks will be brought current. We apologize for the inconvenience this has caused you and your customers.”
We received the below statement from CO when we asked if they may be experiencing issues in sending acknowledgements. We will post additional updates as they are received.
“We discovered yesterday that some submissions were processing without creating and sending acks. Our developers are testing a solution.“