Tag Archives: ACA

ACA – Instructions for identifying which Scenario your returns falls into

Scenario 1: If the return was filed between 3/9/2017 7 AM and 3/10/2017 5 AM the return is on the list because SRP was not calculated in the return and if you had a 1095A in the return, the 8962 was not calculated in the return.

Scenario 2:  If the return was filed after 3/10/2017 5 AM, the return calculated correctly and printed correctly for the taxpayer, however, SRP and/or excess APTC was excluded when the e-file was created.  This sent the wrong refund/balance due to the IRS.

Review blog post on identifying the returns and running the Problem Returns Report

Review the return by doing the following:

(1) Locate the return in your returns list

(2) Select Tools

(3) Select Client List

(4) Look at the date when the return was electronically filed

Note:  The above return falls into Scenario 2 because it was filed on 3/11

In this particular scenario, $977 was sent to the IRS in the e-file because it went through the e-file server that was not calculating ACA

In this particular scenario the difference is the $80 Excess APTC that was not included in the e-file

 

Blog posted 03/23/2017              6:34 AM

ACA – Instructions for identifying Potential Returns impacted by Calculation Error

(1) Login as a user that can run reports

(2) Click Select on Reports

(3) Click Select on Management Reports

(4) Click Problem Returns Report

(5) Click EFIN selection

(6) You must select the EFIN (even though there is only one EFIN listed)

(7) Click Run Report

Note:  If there are NO potential returns the report will be blank

If there are potential returns prepared at your site, it will include the following information

  • EFIN
  • Last 4 of SSN
  • First Name
  • Refund at the time the return was filed
  • Balance Due at the time the return was filed

Note:  If your site has prepared under 999 returns, you can search by last 4.

Note:  If your site has prepared over 999 returns, you will have to first by first name and compare the last 4 to your list

Blog posted 03/23/2017              6:25 AM EST

ACA Calculation Issues — Message from IRS

Background Scenario 1:   On Thursday, March 9 (7am) through Friday, March 10 (5am), TaxSlayer identified that the software was generating calculation errors in the section of ACA.  Issues identified by TaxSlayer were as follows:

  • Shared Responsibility Payment (SRP) was not calculating.
  • Form 8962, Premium Tax Credit (PTC) was not calculating the PTC Claim and Reconciliation of Advance Payment of PTC properly.

 Background Scenario 2:  On Friday, March 10 (5am) through Thursday, March 16 (10:30am), TaxSlayer identified that a specific e-file server was extracting ACA information that was included on returns when they were e-filed. Issues identified by TaxSlayer were as follows:

  • Shared Responsibility Payment (SRP) was calculating in the return, but not being included in the e-file.
  • Excess advance payments of the premium tax credit (APTC) was calculating in the return, but not being included in the e-file.

Information:  TaxSlayer determined the number of returns potentially impacted during this time period:

  • 116 returns were identified as those potentially impacted by SRP.
    • This is based on any member of the household having at least 1 month where they were not covered by insurance and there is no exemption.
  • 2,328 returns were identified where the taxpayer purchased insurance from the marketplace and the preparer entered a Form1095-A, Health Insurance Marketplace Statement.
    • This does not necessarily mean the refund/balance due was impacted, it could simply mean the reconciliation with the Form 8962 did not go in the e-file.
      • This could result in the taxpayer receiving a notice from IRS requesting a copy of the Form 1095-A
  • 2,279 returns were identified that went through the specific e-file server.
    • This does not necessarily mean the refund/balance due was impacted, but the return needs to be reviewed to ensure the refund/balance due in the return is the same that went up in the e-file.
    • 900 of these were rejected for IRS Reject FPY-089. Verify that you do not have any outstanding rejects.
      • This reject code occurred when the return calculated correctly and printed correctly for the taxpayer, however, SRP and/or excess APTC was excluded when the e-file was created.

Action: TaxSlayer developed a management report within the software titled “Problem Returns Report”.  (See attached instructions)  Sites can review this report to determine if there were returns prepared that may have the calculation errors.  Sites can then decide how they wish to handle those returns to provide any additional assistance to the taxpayer.

In the rare event, the calculation error results in a balance due for the taxpayer, TaxSlayer will be providing a letter that sites can share.  It can be used as an explanation to waive any interest and/or penalties associated with the balance due.

Contact:  We greatly apologize for any inconvenience this matter may have caused.   If you have any questions or need additional assistance, please contact any member of the TaxSlayer Transition Team.

 

Blog Posted 03/23/2017              6:10 AM

 

SRP and F8962 not Calculating in Return on 3/9/2017 — Follow up Information

03/17/2017:  We are still working on a method of distribution for the identified pool of impacted returns.

03/15/2017:  As a point of clarification, the information in this post is specific to the SRP and 8962 NOT calculating in the returns from March 9th at 7:00 AM – Friday at 5:00 AM.  During this period, if SRP should have been in the return, it was showing as zero on the PDF and if a 1095A was in the return, the 8962 was not generated in the PDF and any corresponding PTC was showing as zero on the PDF.

03/14/2017 — We have identified the pool of potential returns that were impacted by this issue.  We will work with the IRS Core team on a method of distribution.  We are also working with the IRS CORE team to understand how IRS Processing is handling these returns.  As we learn information we will pass the information along to help make informed decisions on how to handle each situation.

3/10/2017 – 7:45am – The issues with SRP not being applied to applicable returns and the 8962 not generating in applicable return PDF’s have been resolved. If you were holding impacted returns, you may now e-file at this time. We recommend reviewing these returns prior to submission to ensure the return is accurate. We apologize for the inconvenience.

3/9/2017 – 3:00pm – We anticipate having both of the issue below resolved tomorrow morning. Please hold these returns until this post is marked as resolved.

Our development team is currently reviewing reported issues with the Health Insurance menu.

  • Shared Responsibility Payment not calculating: If a return should be subject to the Shared Responsibility Payment, it is not being applied to the return.
  • Form 8962 not calculating: If a return has completed the 1095-A within the Health Insurance menu, Form 8962 is not generating in the PDF.

We will provide more updates here as additional information becomes available.

Pro Online: Post Thursday ACA returns (subset of returns)

We have identified and corrected an issue that impacted a subset of ACA returns created/edited after 5 AM on Friday, March 10th.  It is important to note that this did NOT impact ALL returns in the following scenario.

Scenario:  The taxpayer had insurance purchased through the marketplace and had SRP or Excess APTC calculated in the return.  The return displayed and printed the calculated information, but was not included in the e-file.  This made the refund/balance due in the e-file different than the refund/balance due calculated by the software.

Next Steps:  Returns that were rejected as described in the blog post referencing FPY-089 can now be opened, reviewed based on your site procedures and resent.  This also impacts a group of returns that were IRS accepted with a different refund/balance due in the e-file than was calculated in the return.  We are working to identify the potential pool of these returns and distribute the information.

We will also continue to maintain updates on the blog post regarding the returns that were impacted on Thursday, March 9th due to SRP not calculating in the return and the 8962 not being in the return.

Blog Posted 03/15/2017                5:04 PM EST

SRP and F8962 not Calculating in Returns (RESOLVED)

03/14/2017 — We are in the process of identifying the pool of potential returns that were impacted by this issue.  Once we make this determination we will work with the IRS Core team on a method of distribution.

3/10/2017 – 7:45am – The issues with SRP not being applied to applicable returns and the 8962 not generating in applicable return PDF’s have been resolved. If you were holding impacted returns, you may now e-file at this time. We recommend reviewing these returns prior to submission to ensure the return is accurate. We apologize for the inconvenience.

3/9/2017 – 3:00pm – We anticipate having both of the issue below resolved tomorrow morning. Please hold these returns until this post is marked as resolved.

Our development team is currently reviewing reported issues with the Health Insurance menu.

  • Shared Responsibility Payment not calculating: If a return should be subject to the Shared Responsibility Payment, it is not being applied to the return.
  • Form 8962 no calculating: If a return has completed the 1095-A within the Health Insurance menu, Form 8962 is not generating in the PDF.

We will provide more updates here as additional information becomes available.

Pro Online: Changes to wording in the Health Insurance Section

(1) Added the word “Gross” to the Health Care exemption Certificates screen.  At this point in the Health Care Section, the program calculates if the return is below the Household or Gross income filing threshold based on the entries in the return.

(2) Added additional verbiage for clearer on screen guidance for users to determine if the taxpayer should replay all APTC received.

Blog posted 02/28/2017                 8:21 AM EST

 

Changes to ACA

Blog Posted 02/14/2017 —  9:48 AM

Pro Online/Practice Lab 2016: Form 8965 Exemptions

The exemption list has now been updated to include Code H:  Member of tax household born, adopted or died

0112 8965 exemptions

Blog Posted 01/12/2017  6:55 PM EST

Pro Online/Practice Lab 2016: Dependents Modified AGI (ACA)

The Dependents’ Modified AGI (if filing requirement page) now displays for all insurance selections (no insurance, private insurance or marketplace insurance)

0103-aca-magi

Previous Behavior:  The page only appeared if the selection was made of purchasing health insurance through the marketplace.

Current Issue:  The Dependent MAGI entry is not carrying to the SRP worksheet.  We will resolve this.

Blog Post  01/03/2017:  5:38 PM EST