Industry received two updates today from two state departments concerning acknowledgements.

Maine: We are experiencing a delay in processing electronically filed 1040ME returns due to the large volume we have received over the last week.  We are currently processing April 19^th and 20^th dates and should have all ack’s sent out and caught up by the end of the week.

New Jersey: We are behind in sending acks due to high volume we are expecting all acks to be delivered by the end of the week.

Software vendors received the below message from GA DOR.

“We are experiencing a delay in acknowledgements being sent.  Thank you in advance for your patience as we work to resolve this issue.“

4/10/23 – Latest from Utah.

“Good afternoon,

As of this morning, all submissions received prior to today (4/10) have been acknowledged. Please contact me if you are waiting on an acknowledgement from Utah.”

4/4/23 – Latest from Utah.

“Utah is still having trouble acknowledging approximately 1,200 MeF submissions. As previously mentioned, in most cases the returns have been accepted and processed but we have not sent an acknowledgement.

We have resolved the underlying issue to prevent it from reoccurring. We are investigating sending acknowledgments for the remaining 1,200 files. My tech team does not have an estimate on when this will be resolved.

We are expanding our state perfection period to 40 days to allow any returns that were rejected by the state to be corrected and resubmitted as timely filed.”

Software vendors received the below message from Utah yesterday evening.

“Utah is experiencing an issue sending acknowledgements to the IRS for some returns. This happened first on 3/17, then 3/23 through to today. In most cases the returns have been accepted and processed but not acknowledged. We are working to get acknowledgements sent on all Utah submissions. I’ll send a follow up email when this issue has been resolved.“

Software vendors received the below message from GA DOR yesterday evening.

“We are experiencing a delay in acknowledgements being sent.  Thank you in advance for your patience as we work to resolve this issue.“

Software vendors received the below message from MO DOR this morning.

“Good Morning,

Missouri DOR recently issued letters to Missouri taxpayers who filed with a Head of Household or Qualifying Widow(er) filing status from 2018 -2021, regarding a credit for 2022 Individual Income Tax. DOR’s Income Tax Bureau has provided me the information below to send out, so the software developer community is aware of this and able to address customer inquiries regarding the letters. As noted below, the credit will automatically be applied by DOR and does not need to be claimed on the 2022 MO return.

On Dec. 22, 2017, the federal government passed the Tax Cut and Jobs Act. This act made significant changes to the federal tax code, including the removal of personal exemptions and dependent deductions. As the state of Missouri bases the income tax calculation on an individual’s federal income tax return, the Missouri Department of Revenue made similar changes beginning with the 2018 tax year, by removing a number of exemptions and deductions from the calculation of the Missouri income tax. 

The Department has performed a subsequent review of Section 143.161.2 RSMo, with reference to the removal of the $1,400 personal exemption provided to individuals using the filing status of Head of Household or Qualifying Widow(er). The Department has determined to reestablish the personal exemption on the 2022 individual income tax return and to retroactively apply the exemption to tax years 2018 through 2021 to eligible filers.

If the application of the additional exemption for eligible filers resulted in an overpayment for years 2018 through 2021, the Department applied those amounts as a credit on the 2022 income tax period. When taxpayers file their 2022 income tax return, the credit(s) will automatically be applied to the income tax return.”

3/24/2023: This has been resolved.

3/6/2023: We are still receiving reports of sporadic printing issues for NC with estimated payment vouchers added. We have opened a new high priority work item (Issue 9563)

3/6/2023: The fix is live.

The fix is scheduled to be deployed the morning of Monday, March 6th.

Our development team is aware returns with a NC return added (more specifically with Form NC-40, Estimated Payment Vouchers) are continuing to experience printing issues. We will update this post as additional information is available. If you have returns impacted at your site, we have a couple recommendations that may help depending on what you are trying to do.

Note: E-filing NC returns with estimated payment vouchers is not impacted.

If you are trying to quality review an impacted return, remove the estimated payment vouchers. The same is true to provide a copy of the return to the taxpayer. Obviously the taxpayer needs the payment vouchers, otherwise they wouldn’t be added to the NC return. Once our issue is resolved, we recommend utilizing the Customer Portal to provide a copy of the return to the TP with the vouchers. Another option is to try to print the return from other areas of the application such as:

• Summary/Print page
• State PDF View from the State Section grid
• Submission page of e-file
• Client List
• Client Status

How does it work in TaxSlayer? Inside the Subtractions from Income menu at the bottom, preparers will answer the below question YES or NO. Based on the selection, the program will automatically calculate the appropriate subtraction for the return. If any adjustments are needed, MN has indicated those adjustments will occur on their end after the return has been e-filed and accepted. Prior behavior for this subtraction allowed the preparer to manually enter the appropriate subtraction value in the return. This manual entry resulted in erroneous MN Reject Code 0628: “Severity: ErrorM1M line 29 must not be more than 488 for single, HOH or MFS, and no more than 976 for MFJ. Xpath: M1M Line 29: ReturnState/ReturnDataState/SchM1M/FrontLineWorkerPayAmt“.

Due to the reject code being issued, the entry behavior was updated to be an automatic calculation instead.

Frontline Worker Pay was signed into law on April 29, 2022. Over 1 million Minnesota workers qualified for the $487.45 payment. Federal Forms 1099 were not issued for these payments. The Minnesota Department of Revenue discovered that taxpayers reported this payment incorrectly on 97% of current tax returns filed. As a reminder, this payment is federally taxable and must be reported on line 8 of a taxpayer’s federal Schedule 1 (Form 1040).

The payment is not taxable for Minnesota returns. If the payment is:

• Reported on line 8 of Schedule 1, also enter this amount on these lines:
  • Line 29 of Schedule M1M, Income Additions and Subtractions
  • Line 10 of Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund
  • Line 5b of Schedule M1ED, K-12 Education Credit
• Not reported on line 8 of Schedule 1, do not include the payment on the lines above.

Entering Frontline Worker Pay properly on both the federal and Minnesota returns will ensure Minnesota adjusted gross income is calculated correctly.