Monday, February 9, 2015

System Update 2014.29.07 Notification


Refunds Today System Update 2014.29.07 is now available for download.
Refunds Today recommends you download and install this update as soon as possible.
You may download the update from the Refunds Today secure website at www.refundstoday.com.
  • Login with your user name (office number) and password then click on "Downloads"
  • In the Left Pane select "1040 Program and Forms" and then choose Refunds Today System Update to begin the download.

Friday, February 6, 2015

IL now processing e-file returns

The Illinois Department of Revenue has indicated that they are now accepting and processing e-filed returns.  However, they have cautioned that acknowledgements will be delayed for several days as they process through the backlog.

IRS to make MeF changes this weekend to resolve certain rejections

The IRS will make changes to their production processing systems this weekend.  The updates will address Rejections for IRS Form 8962 with rejection codes F1040-0428 and F1040-0429. 

We suggest that you hold these returns until the IRS completes their updates which should be completed by February 9th.

Update: Delayed IRS Acknowledgements

We received the following information from the IRS and are passing it along to you.  You can read the entire release here.

Attention: Software Developers and Transmitters
The length of time for the MeF System to create federal acknowledgments and make them available for retrieval is taking longer than expected.  The IRS is closely monitoring the acknowledgment rates and is working to close the gap as a top priority.

Please monitor the MeF Status Page for updates.
Thank you for your patience and support.

Thursday, February 5, 2015

Delay in receiving Modernized e-File (MeF) Acknowledgements

We received the following information from the IRS and are passing it along to you.  You can read the entire release here.

Attention Software Developers and Transmitters
The length of time for the MeF System to create federal acknowledgments and make them available for retrieval is taking longer than expected. As receipts continue to increase throughout the day, the length of time may also increase. The IRS is closely monitoring the acknowledgment rates and is working to close the gap as a top priority.

We will issue a Technical QuickAlert once the delays are resolved.
Please monitor the MeF Status page for updates.
Thank you for your patience and support.

Wednesday, January 28, 2015

IRS Funding to begin January 29

IRS To Start Releasing Refunds
We have received notification that the IRS will begin releasing refunds on January 29, and will continue issuing refunds each weekday throughout the season.  We will provide additional information as it becomes available.

Tuesday, January 27, 2015

IRS- penalty relief for balance due returns resulting from advanced payment of PTC reconciliation

IRS Provides Penalty Relief for Balances Resulting from Advance Payment of Premium Tax Credit Reconciliation (Notice 2015-9),(Jan. 27, 2015)

The IRS has provided limited relief for taxpayers who have a balance due on their 2014 income tax return as a result of reconciling advance payments of the premium tax credit against the premium tax credit allowed on the return. If a taxpayer meets certain requirements, the taxpayer is relieved of the penalty under Code Sec. 6651(a)(2) for failure to pay income tax. The relief applies only to the 2014 tax year, and does not apply to any underpayment of the individual shared responsibility payment resulting from application of Code Sec. 5000A.
Beginning in 2014, someone covered under an Affordable Insurance Exchange (Exchange) qualified health plan is allowed a premium tax credit under Code Sec. 36B. The taxpayer must reconcile or compare the amount of premium tax credit allowed on a tax return with advance credit payments. A difference between the advance payments and the credit allowed on the return may result in either a smaller refund or a larger balance due, if the advance payment exceeds the allowed credit, or a larger refund or smaller balance due, if the allowed credit exceeds the advance payment.
The IRS will abate the penalty under Code Sec. 6651(a)(2) for taxpayers who (1) are otherwise current with their filing and payment obligations; (2) have a balance due for 2014 due to excess advance payments of the premium tax credit; and (3) report the amount of excess advance payments on their timely filed 2014 return. The IRS will also abate the penalty for underpayment of estimated income tax under Code Sec. 6654(a) if the taxpayer (1) is otherwise current with filing and payment obligations; and (2) reports the amount of the excess advance credit payment on a timely filed 2014 return.
When responding to a notice demanding payment of a penalty, the taxpayer should submit a letter with the statement, "I am eligible for the relief granted under Notice 2015-9 because I received excess advance payment of the premium tax credit." Taxpayers who file their returns by April 15, 2015, will be entitled to relief even if they have not paid the underlying liability at the time they request relief. Taxpayers who file their returns after April 15, 2015, must fully pay the underlying liability by April 15, 2016, to be eligible for relief.
To request a waiver of the estimated tax underpayment penalty under Code Sec. 6654(a), a taxpayer should check box A in Part II of Form 2210, complete page 1 of the form, and include the form with their return, along with the statement: "Received excess advance payment of the premium tax credit."
Notice 2015-9, 2015FED ¶46,235
Other References:
  • Code Sec. 36B