Tag Archives: State

Pro Online Left Navigation Bar: New and Updated Links

(1) Print Blank IRS Forms — Renamed to be descriptive of the purpose

(2) State Department of Revenue Links — New link added that allows you to access each Dept of Revenue website where they host their blank tax forms and instructions.

 

Blog Posted 06/15/2017  10:51 AM EDT

IRS E-News: Missouri Storm Victims Tax Relief

Tax Relief for Victims of Severe Storms, Tornadoes, Straight-line Winds, and Flooding in Missouri

MO-2017-01, June 6, 2017

Missouri — Victims of the severe storms, tornadoes, straight-line winds, and flooding that took place beginning on April 28, 2017 in parts of Missouri may qualify for tax relief from the Internal Revenue Service.

The President has declared that a major disaster exists in the State of Missouri. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in Missouri will receive tax relief.

Individuals who reside or have a business in the following counties: Bollinger, Butler, Carter, Douglas, Dunklin, Franklin, Gasconade, Howell, Jasper, Jefferson, Madison, Maries, McDonald, Newton, Oregon, Osage, Ozark, Pemiscot, Phelps, Pulaski, Reynolds, Ripley, Shannon, St. Louis, Stone, Taney, and Texas may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after April 28, 2017, and before August 31, 2017, are granted additional time to file through August 31, 2017. This includes the estimated tax payment due on June 15, 2017 and the quarterly payroll tax returns due on April 30, 2017 and July 31, 2017.  Affected taxpayers that have an estimated income tax payment originally due on or after April 28, 2017, and before August 31, 2017, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before August 31, 2017.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitutes a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area that lost their life or was injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until August 31, 2017, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after April 28, 2017, and before August 31, 2017. Affected taxpayers that have an estimated income tax payment originally due on or after April 28, 2017, and before August 31, 2017, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before August 31, 2017 The IRS also gives affected taxpayers until August 31, 2017 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after April 28, 2017, and before August 31, 2017.

This relief also includes the filing of Form 5500 series returns, (that were required to be filed on or after April 28, 2017, and before, August 31, 2017 in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

Unless an act is specifically listed in Rev. Proc. 2007-56, The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after April 28, 2017, and before May 15, 2017, will be abated as long as the tax deposits were made by May 15, 2017.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year. See Publication 547 for details.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on a 2016 return should put the Disaster Designation, “Missouri, Severe Storms, Tornadoes, Straight-line Winds, and Flooding,” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation  “Missouri, Severe Storms, Tornadoes, Straight-line Winds, and Flooding” in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-829-3676. The IRS toll-free number for general tax questions is 800-829-1040.

Blog Posted 06/12/2017     7:59 PM EST

MI Acknowledgements — Updated information from Michigan

Update 06/06/2017  3:32 PM EDT

We received notification that Michigan has resolved their issues processing returns and have returned to normal processing.

~~~  Original Blog Post (but with corrected post date of the 5th)

We received the following information MI -1040 MeF processing Notice

Michigan is currently experiencing issues processing returns retrieved from the IRS since May 31st.  They hope to have the issues resolved by Tuesday, June 6th.

Blog Posted 06/05/2017   5:01 PM EDT

VA Reject 760-030 (RESOLVED)

4/24/2017 – 1:49am EDT

The issue behind VA Reject Code 760-030 has been resolved. At this time, you can resubmit your impacted VA state returns. To resubmit, go into each impacted return and submit from the Submission page of E-file. Be sure to mark the return as “State-Only” if their Federal return was previously accepted.

4/21/2017 – 8:12am EDT

We are still working on the solution that will allow you to resubmit returns rejected for VA 760-030.

Illinois Acks

We received the following information from Illinois:

They are working a backlog of returns waiting to go through their ACK program.  Returns and payments that have been submitted on time will be considered timely.  We will handle any rejected returns with payments as exception items.

 

Blog posted 04/18/2017  11:23 am EST

Changes to States

 

The following changes have been made to the state

  • Colorado
    • Added a 2nd Contribution Account Holder for Tuition Program Contributions
  • Illinois
    • IL Amended return:  Corrected line 10c if the taxpayer is over 65
    • IL Amended Return:  Property tax entered on Sch ICR, Line 5 now flows to Line 17
  • Indiana
    • Removed the ability to enter special characters in the Indiana Basic Information section that was generating state validation errors
  • Kansas
    • Changed wording on the K-40H to reflect the appropriate way to enter percentages for the Homestead Exemption to prevent state validation errors
      • Percent of Rent or Business Use (For example: 85.99% would be entered as 08599)
  • Maryland
    • Made corrections on the 502X line 4 to reflect the appropriate amount entered under subtractions from income rather than adding to the existing line.
  • Michigan
    • Added an e-file block for the tax scenario when claiming MI standard deduction and Senior dividend/interest deduction as the unremarried surviving spouse due to the specific situation not being supported electronically by the state
    • Made a print correction to CF-1040 for Lansing to reflect correct as 16MI-LNS-1040-1
  • Oregon
    • Returns receiving the following validation error can now be resent:
      • The ‘http://www.irs.gov/efile:StandardCreditCode’ element is invalid – The value ‘801’ is invalid according to its datatype ‘http://www.irs.gov/efile:ORASC40FStdCreditCodeType’ – The Enumeration constraint failed.
  • Wisconsin
    • Added the following entries if Head of Household and married

  • Wisconsin
    • Eligible veterans and surviving spouses property tax credit is now pulling correctly to WI Form 1 line 46
    • Section 3 of the WI Homestead Return is now calculating reduced rent for taxpayers who receive Wisconsin Works payments
    • WI Schedule H credit has been corrected for Line 19
    • Corrected the calculation for the allowable EDVest contribution when the taxpayer has carryover contributions from a prior year without having to enter $1 for current year contribution
    • Added an adjustment line for additional calculations for WI Schedule H line 9d Pensions and Annuities
    • WI Schedule 2440W now populates from the number of weeks with disability payments of at least $100 entered on the Schedule 2440W input screen
    • WI Schedule 2440W now populates the name of disabled person on the Physician’s Statement
    • WI Form 1 standard deduction now calculates at $13,260 rather than $13,271
    • Changed the wording on WI Form 1 Additions to Income to reflect “Capital Investment Credit”
    • WI Form 1; added Addition Number 20 ABLE Accounts to the drop down menu
    • WI Form 1:  Added Subtraction Number 20 ABLE Accounts to the drop down menu
  • Missouri
    • Made a correction to allow the subtraction of Tier 2 from the Private Pensions
    • Added a new entry for Tier 1 RRB to allow for the adjustment of Taxable SSA on the MOA for the pension exclusion
  • New York
    • Added a new line to subtract spouse wages from NY income for wages that qualify for the Military Spouses Residency Relief Act
  • West Virginia
    • Added the ability to enter alpha numeric entries on the WV Senior Citizen Tax Credit Menu

 

Blog Posted 03/10/2017     12:51 PM

State Changes now in Production

The following changes have been pushed to production:

  • Negative values are no longer allowed to be entered in Additions to Income and Subtractions from Income for the following States:
    • Colorado
    • Georgia
    • Kansas
    • Michigan
    • Nebraska
    • Wisconsin
  • Maryland returns that were rejected for MD Form5052-01450-011 can be transmitted again
  • Michigan Nonresident Income Allocation is now carrying to Column B
  • South Carolina returns with the following validation error can be transmitted again
    • The ‘http://www.irs.gov/efile:WagesSalaries’ element is invalid – The value ‘-6907’ is invalid according to its datatype ‘http://www.irs.gov/efile:SCAmountNNType’ – Value ‘-6907’ was either too large or too small for NonNegativeInteger.
  • Vermont returns that were getting a validation error in the e-file section when a date of death is present for the TP or SP can now create the e-files and submit the returns
  • New Jersey – -Cancellation of Debt reported on the Federal return is no longer carrying to the NJ return
  • Ohio SD-100 School District Code — Added Riverside – Lake
  • Utah — Added the ability to enter TC-675R UT Mineral Production Payments

  • West Virginia — Added the WV-8379

Blog Posted 03/03/2017       10:04 AM

New York Reject R0173 — Updated Information

Update 03/03/2017:  You can NOW resend any of your rejected NY returns that have the state return type of ‘Electronic State Balance Due

Update 02/28/2017:  The resolution for this is now in production.  You can resend your rejected NY returns as long as they do not have the state return type of “Electronic State Balance Due“.  You will need to hold these until we resolve the issue with the e-file error.

Note:  Since the Federal return has been accepted,  you will need to do the following:

(1) Select Send State Only

(2) The Federal Return Type must be something other than paper (see example below)

(3) Close the warning dialog that the federal return will not be sent

(4) Complete the rest of the E-file and submission page as normal

(5)  New:  You must use the Save and Transmit to the IRS button to send the State Only Return.

Update 02/27/2017:  We have a solution for this in testing.

Pro Online: How do I e-file the state with no Federal Filing Requirement?

Scenario:  I have prepared the return.  The taxpayer has no federal filing requirement, but they have a state credit.

Steps to take on the E-file Page:

(1) Select Send State Only

(2) Change the Federal Return Type to:  Mail Payment

(3) Close the warning dialog that the federal return will not be sent

(4) Complete the rest of the E-file and submission page as normal.

Blog Posted 02/07/2017  4:13 PM Eastern

Submission Page Error when Selecting Send State Only — Resolved

Update:  This has been resolved, you can now send your states as “Send State Only” with the state return type of:  Electronic State Balance Due

Scenario:  You are selecting “Send State Only” and have the state return type of “Electronic State Balance Due” and receive the following error “You have marked this return as state only, but no states as are marked as electronic”

Recommendation:  We are working on a solution.  Hold these returns until we deliver the solution.  You may also want to use a return tag to easily identify the returns that will need to be sent.

Blog posted 02/25/2017    10:42 AM EST