Update 2/9/24: Impacted returns can be resubmitted.
Update 2/6/24: The IRS has not put an alternative solution in place. As of today, these prior year returns will still reject if the contains a 1099-R with a Federal Withholding amount.
The IRS currently has a business rule in place that will erroneously reject any 2022 or 2021 return that has a 1099-R with Federal Withholding. They are working with industry to determine the best resolution. During the meantime, we strongly recommend that you tag any prior year return that you are planning to electronically file that has a 1099-R with a Federal Withholding amount.
Our current plan is to turn on prior year e-file (2022 and 2021) tomorrow (Feb 2) at 10 am EST