Friday, November 17, 2017

IRS 1040 Cutover Dates

IRS Modernized E-File, the system that processes electronically-filed individual returns, will shut down on November 18th. At that time, the agency will perform annual maintenance and reprogram the system for the upcoming 2018 tax filing season. As a result, any taxpayer needing to file a return after November 18th and before the system is restored must do so on paper. After the shutdown occurs, Tax Year 2014 returns will no longer be accepted for e-filing.

The Wolters Kluwer TAA Electronic Filing Center (EFC) will stop accepting 1040 transmissions at the close of business on Friday, November 17, 2017. 
Doing so should allow adequate time for the states to retrieve their transmissions from IRS, process them and return acknowledgements to the EFC. Customers will be able to retrieve their 1040 and state acknowledgements from the EFC thru the mid-December timeframe when the Business cutover will take place.

IRS has not yet announced their system cutover schedule for Business returns. In addition, IRS has also not announced the opening of return filing for Tax Year 2017 at this time.

Wednesday, November 1, 2017

For Tax Year 2016, E-File Closes on Nov. 18; After That, Disaster Victims, Others Need to File on Paper

WASHINGTON —The Internal Revenue Service today reminded people, including those in disaster areas, who want to file a 2016 tax return electronically to do so by Saturday, Nov. 18, 2017. Filing of paper tax returns will remain available after that date.

IRS Modernized e-file, the system that processes electronically-filed individual returns, will shut down after Nov. 18 so the agency can perform annual maintenance and to enable the IRS to reprogram the system for the upcoming 2018 tax-filing season.

As a result, any taxpayer needing to file after Nov. 18 will need to do so on paper.

While most individuals have already filed their 2016 federal tax returns, certain taxpayers may qualify for an extension until Jan. 31, 2018. This includes taxpayers who live in a federally declared disaster area, have a U.S. tax filing obligation, and had previously obtained a valid 6-month extension of time to file their federal tax return. The federally declared disaster areas include hurricane and tropical storm victims in Georgia, Florida, Puerto Rico, the Virgin Islands and parts of Texas, Louisiana and South Carolina, as well as wildfire victims in parts of California.

See the IRS disaster relief page and e-file page for more information.

Wednesday, October 18, 2017

IRS Statement on Health Care Reporting Requirement

For the upcoming 2018 filing season, the IRS‎ will not accept electronically filed tax returns where the taxpayer does not address the health coverage requirements of the Affordable Care Act.‎ The IRS will not accept the electronic tax return until the taxpayer indicates whether they had coverage, had an exemption or will make a shared responsibility payment. In addition, returns filed on paper that do not address the health coverage requirements may be suspended pending the receipt of additional information and any refunds may be delayed.

‎To avoid refund and processing delays when filing 2017 tax returns in 2018, taxpayers should indicate whether they and everyone on their return had coverage, qualified for an exemption from the coverage requirement or are making an individual shared responsibility payment. This process reflects the requirements of the ACA and the IRS’s obligation to administer the health care law.

Taxpayers remain obligated to follow the law and pay what they may owe at the point of filing‎. The 2018 filing season will be the first time the IRS will not accept tax returns that omit this information. After a review of our process and discussions with the National Taxpayer Advocate, the IRS has determined identifying omissions and requiring taxpayers to provide health coverage information at the point of filing makes it easier for the taxpayer to successfully file a tax return and minimizes related refund delays.

Monday, October 16, 2017

Oct 15th tax deadline - filing tips

The October 15th tax deadline is upon us 

We strongly encourage you to transmit your e-files at least two hours before the midnight (midnight Eastern time) deadline.
You will notice on the volume to be steady all through the day with the IRS on the day of the deadline. Both return volume and return size will affect processing time. While you are accustomed to receiving your Federal acknowledgements within a one hour time-frame, that turnaround time will increase throughout the day. You may see your acknowledgements take from 2 to 4 hours, and possibly longer.
This is why we suggest that you send returns periodically throughout the day. This will help spread out the volume and also help eliminate some of the 'deadline rush' which also impacts IRS processing.