3/8/21

MO has resolved the issued on their end. For any MO returns rejected with Reject Code MO1040-0022, they can be resubmitted at this time.

We have opened Issue 5631 regarding MO Reject Code MO1040-0022 which states, “Taxable Social Security reported on Form MO-A, Part 3, Section A, B, and C is not equal“. MO has indicated this is an issue on their end and will notify us when this issue has been resolved. At this time, if you have any impacted MO returns with this reject code, please do not resubmit until this blog post has been updated.

A fix to Business Rule MO1040-0022 will go into production Saturday evening.  Please let me know if there any continued issues after that time.

We are also working on an update to Business Rule MO1040-0012.  We expect to have this in production by mid-week next week.

Once MO has these changes in their system, you will be able to resend any of your state returns rejected for these reasons.

Note:  You can resend MO1040-0022 beginning Sunday

We will notify you when you can resend MO1040-0012

3/2/21

“We expect to have the backlogged submissions fully cleared by COB Wednesday.”

The below was received from New Mexico regarding delays in issuing acknowledgements.

“For the first week after the IRS opening, New Mexico typically throttles incoming submissions. This does mean that it will take more time than usual to clear our pending queue, and to get acknowledgments out the door. We would expect to have the backlog cleared by early next week, and any pending acknowledgments should have gone out by that point.“

4/15/21

Maryland, as of 4/15/21, has implemented the new schema to support Form 502LU and other applicable changes. Taxpayers with Form 502LU on their MD returns should now be able to e-file those returns.

See information regarding the Maryland Relief Act here.

Maryland recently signed into law (February 15th, 2021) their RELIEF Act. With this recently passed legislation, a new subtraction form has been introduced (Form 502LU) to account for subtracting unemployment income from being taxed on the Maryland return. This form has been released by Maryland to software vendors and has been implemented into the TaxSlayer software. However, Maryland has not yet released the new schema to support this form via e-file. For this reason, if Form 502LU is on a return for your client(s), you will see an e-file block preventing you from e-filing the Maryland return at this time (the Federal return can still be e-filed).

Maryland has indicated the new schema will not be made available until early March. Once the schema has been issued and implemented into our software, the e-file block for impacted returns will be removed and those returns can be e-filed at that time. We will update this blog post once the new schema has been implemented. If a taxpayer has unemployment income reported on their Federal return, using Form 502LU, it will be automatically subtracted from the Maryland return without the need for manual adjustment.

Maryland has also stated that for any returns already filed that can now take advantage of this unemployment subtraction, an amended MD return must be prepared and filed.

Software vendors received the below message from Missouri today. If your site(s) has any MO returns with the mentioned Reject Code, please hold these returns and do not resubmit until we update this post indicating MO has resolved this issue.

“Due to an issue identified with our the new MO business rule MO1040-0022, we are in the process of testing a fix to this rejection.  The rule is causing certain returns to reject when a taxpayer has Taxable Social Security but does not meet the requirements for the Social Security Exemption.  We are currently testing a fix on this and hope to have the fix in production next week.  I will update when this is available.“

2/26/2021

Connecticut has resolved their issue with the IRS. CT e-files can resume at this time. If you have any CT returns rejected with Reject Code: Rule Number – State-001, they can be resubmitted at this time.

2/25/2021

Software vendors received the below message from Connecticut.

“It appears that the IRS is rejecting all Connecticut Returns for the reason of: IRS ERROR MESSAGE: The agency to which a State Submission is filed must participate in the Fed/State program.  Connecticut has contacted the IRS to figure out what is causing these rejects.  Until this issue is resolved, Connecticut is recommending that you do not submit any MeF submissions to Connecticut.  I will send out an email once this issue has been resolved.”

Note: At this time, we have turned off the ability to e-file CT returns per CT guidance.

March 2, 2021

Amended returns for 2019 and 2020 can now be e-filed at this time.

February 19, 2021

We have received reports of amended return e-files being rejected as a duplicate submission (Reject Code R0000-932-02). We have opened a high priority issue (Issue 5517) with development to look into this. At this time, we ask that you do not e-file any amended returns (2019 and 2020) until this blog post is updated.

February 18th, 2021

For any California returns with Reject Codes 960, 767, and 766, please hold off on resubmitting these returns to California. There is no action required by you at this time.

Any CA returns previously rejected with Reject Code 960 have been corrected and resubmitted by TaxSlayer. However, if a CA return initially rejected with Reject Code 960, when resubmitting, it will be rejected again with either Reject Code 767 or 766. Reject Codes 767 and 766 are being sent in error by the California Franchise Tax Board. They are aware of the erroneous rejects, but will not have the solution in place until Tuesday, February 23rd.

Plan of Action: As we continue to see CA returns with Reject Code 960, they will continue to be fixed/resubmitted by our developers, which will then cause the return to reject again with Reject Code 767 or 766. Once CA implements the necessary updates on their end, we will resubmit all impacted CA returns.

This blog post will be updated after all impacted CA returns have been resubmitted.