If your site filed a NC return and it is rejected with Reject Code X0000-005, we will resubmit impacted returns by the end of this week. No action is required on your end. North Carolina updated their schema to a new version not yet in production. Any currently e-filed NC returns have the old (now outdated) schema and will reject.
Note: NC will not begin processing acks until sometime in February. The exact date is not known at this time.
2/8/2022 – This is now resolved.
We are aware of an issue where users are getting a validation message indicating a required selection is needed for the Federal return type after the Federal return has been accepted. This is prohibiting users from advancing past the Return Details page of e-file. Currently, this means if you are attempting to resubmit a previously rejected state return OR attempting to transmit a State Only return, you are unable. If you simply need to print a copy of a return and are trying to access the Submission Page, we recommend generating a PDF from Client List instead.
We have opened a high priority ticket (Issue 6620) with development.
Software vendors received the below messaging from Arizona. No acks will be returned until Monday morning after 8am MST.
“Arizona’s MeF Production system is scheduled to be unavailable from 4:00 PM MST, Friday, 1/28/2022 through Monday, 1/31/2022 at 8:00 AM MST. During the maintenance period, all processing will be paused (returns filed during this timeframe will be queued at the IRS). Returns will be retrieved and processed after the maintenance period.”
1/3/2022 – Roughly twenty one (21) State Returns are now live! Please note the information posted below when reviewing the initial state application release. The remaining states will be released for preparation over the next couple of weeks.
Note: Initial load times may be slower than normal, but this will subside as additional state returns are created, etc.
It is important to keep in mind when accessing 2021 state returns as they become available, some states may have been delayed (and are still experiencing delays) in releasing final 2021 forms/instructions. As you prepare 2021 state returns in the Practice Lab, you may still see 2020 calculations and/or PDF forms. Customer Service will not be creating issues for these items until the states are closer to finalization. As information continues to be released and finalized by the states, the Practice Lab will be updated to reflect the most recent information available.
10/8/21
NY returns can now be e-filed. Any previously rejected NY returns for R0170 can be resubmitted as well.
10/5/21
Due to an issue with NY returns where Reject Code R0170 is being issued in error, the NY Department of Taxation has requested to all software vendors to not transmit any NY returns at this time. Until this issue is resolved, any NY return transmitted will be rejected in error. This only impacts NY returns. Please do not attempt to resubmit any previously rejected NY return.
Software vendors received the below message from the Illinois Department of Revenue.
“The Illinois Department of Revenue will be implementing a new version of its tax system over the Labor Day weekend. The update is a major version change and will require the BIT and IIT Modernized e-File acknowledgement process to be shut down starting Friday, September 3rd, 2021 at 4:00pm and will not begin acknowledging the submissions until Tuesday, September 7th, at 9:00am. You will still be able to submit Illinois business and individual income tax returns during the version update but no acknowledgements will be generated. Please remember to reach out to any clients that file during this period of time and communicate that they will not receive an acknowledgment until September 7th.”
Below is a recent announcement from the Arizona Department of Revenue. Click Here for the complete statement (also posted below).
“Federal legislation enacted on March 11, 2021 included a provision to exclude up to $10,200 of unemployment benefits from federal income tax. Arizona later conformed to the tax provisions in the American Rescue Plan Act of 2021, resulting in the same $10,200 of unemployment benefits being excluded from Arizona income tax.
Who is impacted?
Arizona taxpayers who received unemployment benefits during 2020 and filed their Arizona tax return before the March 11, 2021 enactment of the American Rescue Plan Act of 2021 must amend their 2020 Arizona tax return to receive a refund of the amount of Arizona income tax they overpaid. Arizona taxpayers who received unemployment benefits during 2020 and filed their Arizona income tax return after March 11, 2021 most likely already received the benefit of the unemployment exclusion and should not file an Arizona amended return.
Regardless of whether they filed before or after March 11, however, Arizona taxpayers who received automatic federal income tax refunds of unemployment benefits from the IRS should amend their 2020 Arizona income tax return.
Will Arizona income tax refunds be issued automatically like the IRS is doing?
No. To receive an Arizona income tax refund of unemployment benefits, taxpayers will need to file an amended Arizona return (Arizona Form 140X).
When should I amend my 2020 Arizona income tax return?
You may amend your 2020 Arizona income tax return for a refund of your unemployment benefits only after you amend your 2020 federal income tax return or after the IRS automatically adjusts your 2020 federal income tax return. In order to receive a refund of your 2020 unemployment benefits you will need to amend your 2020 Arizona income tax return within 4 years of the original due date of the return.
What information do I need to have to file an Arizona amended return?
Taxpayers will need a federal transcript of their 2020 income taxes after the IRS adjusts their federal income tax return. Request a transcript at: https://www.irs.gov/individuals/get-transcript.
How do I file an Arizona amended return?
Arizona taxpayers will need to file an Arizona Form 140X to amend their 2020 Arizona tax return.
Most Arizona residents will be able to complete the Arizona Form 140X by following the simplified instructions at:
https://azdor.gov/sites/default/files/media/FORMS_INDIVIDUAL_2020_140X-UI-Notice.pdf
Part-year residents and nonresidents will need to refer to the full Arizona Form 140X instructions. Additionally, resident taxpayers with changes beyond unemployment, the excise tax credit, and the family tax credit will need to refer to the full Arizona Form 140X instructions at: https://azdor.gov/forms/individual/individual-amended-return-form
Can I e-file Arizona Form 140X?
The Arizona Form 140X is not currently available for e-file. It must be filed by paper.”
The Nebraska Department of Revenue released a statement today regarding the treatment of returns impacted by the American Rescue Plan Act (ARPA), specifically around Unemployment Exclusions Adjustments. Read the full statement here.
“The American Rescue Plan Act of 2021 (ARPA) was signed into law by President Biden on March 11, 2021. ARPA includes a retroactive provision making the first $10,200 per taxpayer of 2020 unemployment benefits nontaxable for taxpayers with modified federal adjusted gross income (AGI) of less than $150,000. For married, filing jointly taxpayers, each spouse may exclude up to $10,200.
The Nebraska Department of Revenue (DOR) will automatically adjust the AGI and recalculate the tax on the returns of individuals who electronically filed their returns with Nebraska prior to April 1, 2021 to the extent that DOR can determine that the unemployment compensation was not excluded from income. There are exceptions noted below.
If this adjustment is made to your return, you will receive a letter from DOR notifying you of the correction. Please review the adjustment made and your filed return when you receive this notification and consider if an amended return is needed. Please attach a copy of your notice of adjustment from the IRS or a copy of the federal amended return if you file a Nebraska amended return.
If any of the following apply, DOR will not automatically adjust your return to exclude any unemployment that should be excluded under ARPA. To exclude this income, you must file an Amended Nebraska Individual Income Tax Return, Form 1040XN, to receive the adjustment that you are entitled to:
DOR will not automatically adjust credits that may be impacted by the reduction to federal AGI. Taxpayrs who become eligible for any credits or any increase in credit amounts due to this adjustment must file an Amended Nebraska Individual Income Tax Return, Form 1040XN, to claim or change a credit.”