Below are bullet points from our opening presentation of the All Partner Call before opening up for Q&A from the field. Q&A notes are at the bottom of this post.

The American Rescue Act was signed into law late afternoon Thursday, March 11, 2021.  One of its many provisions was the exclusion of up to the first $10,200 of unemployment compensation.  Friday, March 12, 2021 the IRS released the Unemployment Compensation Exclusion Worksheet.  On Tuesday, March 16, 2021 the IRS instructed software vendors to use the UCE Worksheet for the tax calculation.  On Friday, March 19, TaxSlayer had updated the software to adhere to this IRS guidance.  On March 23, 2021 IRS released updated guidance to software vendors that there were certain items that the UEC was not be taken into consideration when calculating the Modified AGI for those items.  By Wednesday TaxSlayer had updated the software to calculate UCE in accordance with the IRS new guidelines.

The IRS has not provided guidance on what to do with returns that might have been affected by the updated guidelines, suggest your site review tax returns with Form 1099-G filed between Friday and Monday to see if any had additional changes and create a return tag so you can easily find them, once the IRS provides guidance.

Also, any returns containing Unemployment filed before the IRS directed software changes require no action for the Federal adjustments, the IRS announced they will make the adjustments, no need to file a Federal Amended tax return and there is no timeframe on how long this will take or what taxpayers are expected to see (letter/notice).  Please work with your RM to determine what process your State wants followed.

One other provision of the American Rescue Plan is not requiring any Repayment of the Premium Tax Credit.  To date the IRS has not provided any guidance to software vendors on how to handle the change.  The IRS has not announced how returns already filed will be handled.  More to come.

With all these mid-season changes and season extension, the IRS is playing catch up with updating the Modernized EFile (MeF) system.  There are 2 common items that will cause a return to reject, withholding greater than income, this can occur when all the UC was removed and there was withholding, or when a direct debit date is entered after 4/15.  The IRS continues to update the MeF system.

Finally, rejects are from the IRS, if you are trying to understand why a return rejected please reach out to your RM for some guidance, if the explanation provided from the IRS is not sufficient.

Status of Issue 5502 – Fees not appearing on the invoice?

• Issue 5502 has been committed by development to resolve, however, we do not have an ETA at this time.

For NY, can we decouple these returns from the Federal so we can send them in mass later once NY has updated related to Federal UCE?

• Currently, the only way to not file a state return at the same time as of the Federal is to access the returns individually and mark the state return as “Paper”.

Can we e-file Federal direct debits for 5/17/21 now?

• The IRS has not adjusted their business rules to support direct debits past 4/15/21.

Has the issue been corrected where you can’t print the accepted return from Client Status?

• We expect this to be resolved by next week (week of 3/28/21)

How to clear a rejected return that the TP now doesn’t want to file electronically?

• To clear the “rejected” status, go into the return and mark it as a paper return.

How come the adjustment for PTC repayment is not reflecting in TaxSlayer yet?

• The IRS, to date, has not issued guidance to software vendors on how to handle the PTC provision.

Do we need to amend Federal returns for UCE?

• No, the IRS has stated for returns already filed prior to the UCE implementation that they will automatically adjust these returns on their end.

Where can we find what preparer e-filed a return?

• Go to Client Status for that return. The Return History will show the username for the preparer that transmitted the return.

Below are bullet points from our opening presentation of the All Partner Call before opening up for Q&A from the field. Q&A notes are at the bottom of this post.

Updates since the Last All Partner Call:

• American Rescue Plan
  • The IRS has already started having calls with industry
  • First priority will be distributing EIP3
    • Will issue 1444 C for EIP3 amounts
    • Will be reconciled on TY2021 returns
  • IRS must interpret the updated law in regards to handling the unemployment changes
    • Committed to issue public guidance on how already filed returns with unemployment should be handled
    • We are adding a column to the Pro Web Returns – Detailed Returns report
  • The majority of all changes will be handled via the TY2021 returns
    • Reconciliation of advanced CTC payments
    • Reconciliation of EIP3
  • As the IRS releases information we will assist in distributing it via the blog and Message center
• Scanned Documents
  • We have started the process of automatically deleting the docs after 14 days
• 8915-E
  • Can now add the form to your custom print sets
• E-file volume
  • Seeing pretty significant increases in return prep and e-file volume
• Suggestion Box
  • Reminder that this is a good time to be entering software suggestions as you are preparing returns
    • What would make a process easier
    • Most of you are implementing new processes this year, so how can we help from an application level
  • FSA URLs
    • Messaging around who to contact for support has been much better since our last call
  • Volunteer Times Blog post
    • Opportunity to share your best practices for making appointments, virtual processes, hybrid processes.

IPPIN – How is the best way for a taxpayer to get one?

• Reach out to your Relationship Manager for guidance for best steps to request an IP PIN for the taxpayer.

If we send a return with a wrong RTN number, can we correct that with the IRS before they issue any refunds?

• Generally, no, TaxSlayer (nor any software vendor) can retransmit updated banking info to the IRS after an accepted ack.

8915-E – Are there any known issues still or are we good to e-file?

• All 8915-E updates at this time are live in the software.

State sometimes loading blank page?

• We have an active defect reported with development to look into this, but in the meantime, if this happens at your site, you can refresh the browser page and it will load.

Any update on extending the filing deadline past April 15^th?

• No statements or guidance has been made regarding the filing deadline at this time.

Do we need to use the EIC Checklist as volunteer sites?

• No, the checklist is for paid professionals only.

Can we e-file 2019 amended Federal returns now?

• Yes

Can we elect not to spread taxable income over 3 years with the 8915-E yet?

• Yes

Below are bullet points from our opening presentation of the All Partner Call before opening up for Q&A from the field. Q&A notes are at the bottom of this post.

Updates since the Last All Partner Call:

• State Only e-file has been turned on
  • Remember you still have to select a Federal e-file type
• Watch the blog for e-file messages from the state(s)
• Watch the blog for trending rejects
  • Taxpayer SSN is locked by SSA, you will need to paper file the return (IND-941-X)
• Watch the blog for instructions on trending support calls
  • How do I deactivate a return
    • Correct security template
    • In Progress/Review failed
  • Do Not Mail Banners on State forms
    • States are all over the place with approving forms due to late changes with Cares Act
    • Once we receive print approval, we remove the strip
      • Does not prevent you from e-filing the return
    • Setting up your Ad Hoc Sites
    • What to do if the taxpayer doesn’t know the Spouse SSN for MFS returns
    • Tips on where to find 2019 Earned Income
  • 1040X returns
    • Hold them until we resolve sending the e-file without the 1040X indicator
    • IRS is still working on the 1040X schema, so changes will be occurring over the next few weeks
      • They are currently using 2019 schema
    • Form 8915-E
      • The ability to use Form 8915-E now available for all distribution codes and not just early distributions
      • If Payer died in 2020, distribution is fully taxable on the 2020 return and cannot be spread over 3 years. This is triggered if a TP/SP is marked as deceased in 2020 in Basic Information.

Sites using a FSA Kiosk URL:

• We strongly recommend using the URL we sent you rather than using a URL shortener
  • We cannot control where a URL shortener redirects the URL
  • Tiny URL definitely redirects to something other than the VITA/TCE Kiosk landing page
  • Bit.ly seems to be hit and miss
  • Make sure if you are embedding the URL on an Intranet site, it does not add anything before or after the URL
• Make sure you are communicating how to reach a certified volunteer when sending out the URLs
  • Consumer (TaxSlayer.com) support does not have direct access to their information and they will get messaging to reach back out to where they received the URL from

1040NR:

• On for Pro Online
• Received ATS approval for the FSA Kiosk URL
  • Will create a timeline on when the e-file block will be removed

Form 8915-E – How are withholdings handled? Are they spread over 3 years?

• From our current understandings, Form 8915-E does not account for withholdings so any withholdings are included only in the current year.

Form 8915-E and if it will be added to print sets?

• Yes, we are actively working to make it available as an option to add to a print set.

How to remove EIC from a return?

• In the Federal Section go to Credits > Claiming Refundable Credits After Disallowance > Not Eligible for EIC.

Can TaxSlayer Pro Online be accessed on an iPad?

• Yes.

Can we e-file state amended returns for 2020?

• E-filing state amended returns is not supported in TaxSlayer Pro Online or FSA Software at this time.

Can the FSA product support 1040-NR filings?

• Yes.

Is there a reason why a 1099-R cannot be marked as a Corrected 1099-R like you can for a W-2?

• Adding this checkbox is on our Enhancement backlog for future implementation.

Is State Only filing supported in the FSA software?

• No.

Below are bullet points from our opening presentation of the All Partner Call before opening up for Q&A from the field.

E-file opening Day 2/12

• We received over 1,400 e-files during our controlled launch window
  • Transmitted and received acks for 101 returns
  • The rest will be submitted to the IRS on Friday
• We will monitor IRS volumes and turn on 2020 e-file late morning (ET) on the 12^th.
• You will have to open returns created prior to the 12^th in order to electronically file them

FSA URLs

• E-files submitted by the taxpayers will be sent to the IRS on the 12^th

Scanned Docs

• We have turned on the scanned document feature for all orders we have received
• If your site is not turned on, please reach out to your SPEC RM
• Scanned Document mini guide under VITA/TCE User guides and on the Practice Lab (section 6)
• Video on the Practice Lab

Trending Rejects

• Name/SSN Mismatch
• EIN/Company name mismatch
• EFIN not active
• Biggest is IPPIN
  • IRS opened up for anyone to apply for get an IP PIN
  • May not understand they need to give it to their preparer
  • May not understand it changes every year

Customer Service Opportunities

• Monday – Friday 8am – midnight ET
• Saturday/Sunday – 8am – 8 pm ET
• Phone
• Email
• Chat
• Phone number and email address is located on the VITA/TCE Springboard

When will Phase II of 8915-E be implemented?

• There is not a specific ETA for Phase II, however, as additional F8915-E updates are released, they will be included in Release Notes.

Do you need to use both the 8915-E and 5329 to remove an early distribution penalty?

• No, if the early distribution is COVID-19 related, electing to use Form 8915-E will remove the early distribution penalty (up to $100,000).

Can you edit existing security templates to use scanned documents?

• Yes, if your site is using Scanned Documents, you can edit existing Security Templates to allow scanned document feature access.

What will be included in additional 8915-E updates?

• Additional updates will include, but not limited to:
  • Election to NOT spread the taxable amount over 3 years (Line 9 checkbox)
  • The option to utilize Form 8915-E for any 1099-R distribution and not just for early distributions as it is currently

Form 8915-E and withholdings: Do withholdings from the 1099-R get spread over 3 years?

• Form 8915-E instructions do not specifically mention how 1099-R withholdings should be (or could be) handled if electing to use Form 8915-E. Any 1099-R withholdings reported appear to be counted in the first year as they normally would be. We recommend consulting with your SPEC Relationship Manager for further guidance.

Below are bullet points from our opening presentation of the All Partner Call before opening up for Q&A from the field.

• Important Dates
  • IRS E-file opens on February 12^th
    • We will turn on e-file around mid-day on the 12th
    • State Only E-files
      • ETA = Monday, February 15^th
    • Prior year (2019 and 2018)
      • ETA = Monday, February 15th
    • Preparers will be required to open all returns created prior to 2/12 before electronically filing them.
• Reporting Issues
  • VITA/TCE Support (email, chat or phone)
    • Support will need to return information for return exhibiting behavior (EFIN and last 4 SSN)
    • Support will reproduce and write up an any applicable issue
    • Volunteer will be provided with issue #
    • Volunteer will receive notification when issue has been resolved
  • Do not put support issues in the Suggestion Box
  • State issues should also come directly to VITA/TCE Support and not to state departments
• Blog
  • Release Notes
    • Title contains state abbreviations and other quick glance titles
  • FSA Kiosk URL posts do not apply to Pro Online users
    • Lookback using 2019 is still in the works
    • For 1040NR returns, there are instructions on how to report prior year state and local refunds. You basically navigate to Other Income, select Other Income not reported elsewhere and enter the value along with a description of Prior Year state and local income
      • If you think these items may impact the taxpayer using the FSA URL, you can send them a tip in the email when you send them the URL or if you have the URL behind a secured login, you could use that portal to post an announcement.
• Left Navigation Panel – lots of resources
  • Release Notes – goes directly to the release notes on the blog
  • VITA/TCE publications and User Guides – 13 different guides available for download
  • Quick access to the VITA/TCE Blog
  • VITA/TCE Suggestion Box
    • Open year round
    • Not for issues
  • COVID19 Information – Quick access to the IRS Coronavirus page (New)
• COVID19 Relief Section
  • Currently another way to enter RRC and 7202
  • It will contain other forms that specifically relate to COVID19 relief
  • Form 8915-E (coming soon)
• Support Hours
  • Monday – Friday 8 am – Midnight ET
  • Sat/Sunday 10 am – 4 ET (prior to efile starting)
  • Sat/Sunday 8-8 ET after efile starts
• On the Horizon
  • Entering email address in Personal Information
  • Adding Notes in the e-file section

Where is the COVID-19 Relief menu found in Pro Online?

• It can be accessed from the left-hand navigation menu inside the Federal Section.

Are we able to prepare EIP tax returns for 2020?

• The IRS has not released information yet regarding EIP returns and if they will be applicable for 2020.

What are the customer support hours?

• Customer support hours are listed in the bullet points above.

Is the 2019 prior year lookback automatic (will it choose the better of the two)?

• If the 2019 earned income has been provided, yes, the software will choose the better of the two so the taxpayer receives the greater benefit.

Is Recovery Rebate Credit available in the FSA software?

• Yes.

Will incorrect Recovery Rebate Credit values cause a rejected return?

• The IRS has not released any information about this to date.

Will the 2019 earned income lookup auto-fill from prior year, if applicable?

• No, must be manually entered by the preparer.

(FSA SOFTWARE) How does a taxpayer enter 2019 Earned Income for EITC and CTC calculation purposes?

• Navigate to Basic Information > Personal Information > Additional Personal Information. Check the box for “[Taxpayer Name] was affected by a natural disaster during the current tax year“. Enter “COVID-19” as the disaster event, then provide the prior year earned income amount.

VITA/TCA Volunteer Tax Alert

VTA 2021-01 Certification Testing and Using Practice Lab

Purpose

Volunteers should use caution when completing their certification tests using the Practice Lab.

Identified Issues

The Practice Lab has not incorporated all 2020 tax law changes. Additionally, it does not include the 2020 draft versions of all the forms or schedules. This may cause users to make inadvertent errors when taking their certification tests.

Please note that certain calculations could change as the IRS continues to finalize instructions for tax year 2020. TaxSlayer is working diligently with the IRS and state agencies to incorporate updates as they receive them.

The 1040 View in the Practice Lab still reflects 2019 Form 1040. It is recommended that volunteers generate the tax return PDF from the Client List or Summary/Print menu to see the return on a tax year 2020 draft Form 1040.

Message to Volunteers

Unless you have an immediate training need to certify for tax year 2020, volunteers should wait to take the 2020 VITA/TCE certification tests when the final forms are available in the Practice Lab.

The identified issue in the Practice Lab may affect your answers for any certification or practice return preparation scenarios that include:

• Form 1099-NEC
• The deduction for charitable contributions
• The recovery rebate credit
• Credits for sick and family leave for certain self-employed individuals
• The deferred payment of 50% of Social Security tax for certain individuals
• The inclusion of coronavirus-related distributions in income ratably over a 3-year period, and repayments of those distributions

Other tax provisions may also be affected.

The IRS anticipates that Form 1040 will be finalized in mid-December. TaxSlayer will then begin to update the Practice Lab with the final 2020 form at that time. Again, volunteers not having an immediate need to certify should wait until the Practice Lab is updated. Volunteers who have a need to certify early may discuss the impact and possible workarounds with their SPEC relationship manager.

Use caution when completing the following test scenarios

• Basic Scenario 6

  • Name of charitable organization and date of contribution not provided. Enter the name of any charitable organization and date in tax year 2020.
  • The screen to input direct deposit information is not available.

• Basic Scenario 7

  • Name of charitable organization and date of contribution not provided. Enter the name of any charitable organization and date in tax year 2020.
  • The EIN on Form W-2 auto-populates with a different name and address. Type over the data with information shown on Form W-2.

• Basic Scenario 8

  • The form used to request a split of refund is not in the first TaxSlayer software release in the Practice Lab.
  • The EIN for the daycare provider auto-populates with a different name and address. Type over the data with the information shown on the statement.

• Advanced Scenario 6

  • In the Interview Notes, between the first and second sentence of the seventh bullet, add “He received a scholarship and the terms require that it be used to pay tuition.”
  • The recovery rebate credit does not calculate in the first TaxSlayer software release in the Practice Lab. Completion of the tax return is not needed to respond correctly. Refer to the information in Publication 4491 and/or Publication 4012.
  • The screen to input direct deposit information is not available in the Practice Lab.

• Advanced Scenario 7

  • The sale date of stock is indicated as 12/1/2020 on Form 1099-B. If you are taking the test prior to 12/1/2020, enter a date in tax year 2020 prior to this date.

• Advanced Scenario 8

  • In the Interview Notes, third sub-bullet of the seventh bullet, replace 3/15/2020 with 4/15/2020.
  • Form 1099-NEC is not in the first TaxSlayer software release in the Practice Lab. Enter the information in Box 7 on the Form 1099-MISC screen.
  • The new Part III of Schedule SE does not calculate the deferral of self-employment tax payments. Completion of the tax return is not needed to respond correctly. Refer to the information in Publication 4491 and/or Publication 4012.

• Military Scenario 5

  • In the Interview Notes, on the Social Security card for Joseph Stevens, replace 959 with 659.

• Federal Income Tax Updates for Circular 230 Professionals Return Preparation Scenario 5

  • Name of charitable organization and date of contribution not provided. Enter the name of any charitable organization and date in tax year 2020.
  • The screen to claim a recovery rebate credit is not available in the first TaxSlayer software release in the Practice Lab. This does not affect the answer to any test question.

Resources

For specific information refer to the following resources:

• TaxSlayer VITA/TCE Blog
• Draft 2020 Form 1040
• Draft 2020 Instructions for Form 1040 and 1040-SR

For additional questions, please talk to your site coordinator, partner or IRS SPEC relationship manager.

Thank you for volunteering and for your dedication to top QUALITY service!

Happy St. Patrick’s Day to all of the selfless volunteers who give your time to service the needs of their taxpayers.  This year’s celebration looks a lot different than last year with this year’s new term “Social Distancing”.  We recognize that many of you are no longer able to service your taxpayer’s today because of the COVID-19 pandemic.  However, we want to commend you on the 1.8+ Million taxpayers you have provided services for since January 15th.  We raise our Shamrock glasses to you and celebrate your hours of service on this St. Patrick’s Day 2020.