2/18/2025 — Update from CO DOR

Good morning everyone,

We are pleased to inform you that we are starting our soft launch for Individual, Fiduciary, Corporate, and Partnership income tax as of today February 18, 2025.

We anticipate that acknowledgments will not be delayed during this period. We appreciate your patience throughout this process.

We will notify you as soon as we determine the timeline for a full launch. Thank you for your continued support and partnership.

2/16/2025 — Update from CO DOR

We want to inform you that we are not yet ready to open and accept MeF returns this week. We sincerely apologize for any inconvenience this may cause.

We are hopeful that we will be able to open next week and will provide an update as soon as we have a confirmed timeline. We appreciate your patience during this time.

2/3/25 – Update from CO DOR:

Dear Software Industry Partners,

We want to update you on our expected timeline for accepting Colorado tax returns this filing season. We are aiming to have a controlled launch for:

• Individual Income Tax returns during the week of February 14.

Please note that there will be a delay in acknowledgments during this period as we retrieve and process a limited number of tax returns before the official e-file opening.

1/28/25 – This is just an update that the Colorado Department of Revenue will not begin processing CO returns until February 3, 2025. While you can transmit CO returns to TaxSlayer, acknowledgements will not be sent until February 3rd at the earliest. It may take CO 24-72 hours to run through their backlog once they begin processing returns on February 3rd.

4:30pm ET: This issue has been resolved and all impacted returns have been resent from our end. There is nothing you need to do at your site(s) other than waiting on the acks to come back. Acks should start to come back withing 30 minutes to a hour.

We are aware and actively looking into an issue where SSN’s that begin with zero (0) are being stripped from the SSN when transmitted causing a validation error. This post will be updated once the issue has been resolved. Please DO NOT resend impacted returns as they will only validate again.

1:00pm ET: This has been resolved. Note: The current e-file block has been temporarily removed so WV an be e-filed. However, WV is requiring that e-mail addresses be provided as a requirement for e-file. If an e-mail address is not provided in the Federal Basic Information page, any WV return will validate.

2/12/25 – 11:00am ET: We are aware and actively working an issue where West Virginia returns are receiving an e-file block for missing e-mail address when the e-mail address is present in Federal Basic Information. This post will be updated when this issue has been resolved.

How do I identify returns I may need to send as “state only”

• Rejected state returns are listed in your Rejected Clients list located on the welcome page

Common reasons for filing a return as “State Only”

• The federal return is accepted and the state return is rejected.
• You have no federal filing requirement, but need to file the state for a credit
• The taxpayer comes back after their already filed and accepted federal return and needs to file their State return
• The taxpayer needs to add another state to their already filed and accepted return.

When should I NOT file a “State Only” return

• While you are waiting for your state to acknowledge the return you filed with your Federal return.
• Reminder:  States typically take longer to acknowledge their returns than the IRS MeF system.

Is there a report I can run that identifies states that are marked as “electronic” and have not been filed?

• Navigate to Reports >> Management Reports >> Select the Pro Web Returns – Detailed Return Report
• You can either export the report or filter it by the state return type
  • You are looking for any state return type other than Paper with a blank status
• Note:  If you have multiple states on the return, there will be multiple rows per return

What return type do I need to select for the Federal Return?

• TaxSlayer automatically marks the appropriate federal return type when you select the State Only box.
• The federal return portion will be marked as stOnly in client status
• The type of return under the Federal Return Section of the Submission page will reflect : State Only – Federal Return is NOT being submitted to the IRS

How do I transmit my “State Only” returns?

• You must submit them from the Submission Page (Save and Transmit Return)

2/7/25 – This is now resolved.

2/5/25 – The fix has been made in pre-production and is tentatively scheduled to be deployed to production on 2/7/25.

This currently impacts the 1040-NR return in both TaxSlayer Pro Online and FSA (Facilitated Self-Assistance).

• Issue 2824: Navigating to the e-file menu for the first time in a 1040-NR return is removing the “Days Present in the U.S.” entries within the Schedule OI – General Information menu.
  • Workaround: After navigating to the e-file menu for the first time, exit e-file and go back to the Schedule OI – General Information page and re-enter the days present in the U.S. The entry will stay saved when navigating back to e-file.

Congratulations on a successful opening day.  You filed over 8,538 electronic returns with an overall reject rate of 8%.  Below are the top 10 rejects we saw on opening day.

Column 1 = number of Rejects

Column 2 = Reject Code

Column 3 = Reject explanation

The e-File database indicates Form 8962 must be included in the return. The taxpayer, the taxpayer’s spouse if filing jointly, or a dependent claimed on the tax return was enrolled in Affordable Care Act (ACA) Marketplace health insurance and advance payments of the premium tax credit were paid for the coverage. Please resubmit the return with the Form 8962 using the information from your Form 1095-A. If you did not receive or have lost your 1095-A, you can get a copy from the Marketplace through which you obtained coverage. If you think Form 8962 is not required, please resubmit the return with a binary attachment (PDF) containing the heading “ACA Explanation” and explaining why the Form 8962 is not required. Please visit the IRS website at: https://www.irs.gov/newsroom/how-to-correct-an-electronically-filed-return-rejected-for-a-missing-form-8962 for additional information.

TIPS:  

• Look at your e-file warning if you use carry forward on the return.  If there was a 1095-A in the prior year return but  not the current year return, there will be a warning.
• Get on the phone with the taxpayer and the marketplace.  Phone numbers for Federal and state marketplaces can be found at Marketplace Phone numbers
• The taxpayer may not have received their 1095-A yet so if you are asking if they received their 1095-A, it is possible they have not.

The IRS has indicated shutdown begins on Saturday, November 30, 2024, at 11:59 p.m. Eastern time, in order to prepare the system for the upcoming Tax Year 2024 Filing Season. After this date and time, no returns can be electronically filed. Additional information available here.

Note: TaxSlayer Pro applications will still be available after the cutover, but if you prepare returns, you will need to file them via paper until the IRS brings their 1040 MeF system back online in late January. When the 1040 MeF system comes back online, you will be able to electronically file the following years: 2024, 2023, and 2022.