2015 Quick Refund Estimator Available!

Refunds Today is proud to announce the release of the 2015 Quick Refund Estimator.  This time saving tool will allow you to prepare an estimate of your client's anticipated refund in just seconds!!!! 

This product is included with all Plus and Premier software packages and is available NOW. For those in the Basic or Standard packages, a trial version is also available.  To download the 2015 Quick Refund Estimator, full or trial version, login to the Refunds Today website at www.refundstoday.com and click on the Downloads section. You'll find the appropriate download link in the Other Module Updates section in the Left pane.

Below are a few outstanding features of the Refunds Today Quick Refund Estimator:

• Updated to reflect current tax law changes.

• Simply enter: filing status, number of dependents, W-2 information, and Health Insurance information.

• The Quick Refund Estimator calculates: 2015 estimated Federal Tax, Child Care Credit, Child Tax Credit, EIC, Additional Child Tax Credit, Additional Medicare Tax, Net Investment Income Tax, Self-Employment Tax, Estimated Federal Refund and even EIC Combat pay.

• Estimates Health Insurance Penalty for households without health insurance coverage for 2015 and 2016.

• Provides a client letter concerning the estimated federal tax and includes a liability disclaimer to be signed by the client or prospective client.

• Good for computing estimates and for double-checking the accuracy of tax return entries into the Refunds Today Software.

New in 2015

• Additional health care penalty calculations visible on Main screen

• Healthcare penalty screen now allows calculations based on the number of months without coverage instead of assuming no coverage for the entire year. 

• Healthcare penalty carries from the worksheet and is now included as part of the refund / balance due

• Client letter updated and reorganized

If you don't have the Plus or Premier package, you can purchase the 2015 Quick Refund Estimator for as little as $50.  Better yet, we'll let you "Try it before you buy it" with our Trial Version download (see above). Once you reach the maximum number of trial estimates, you will be provided with a link that will allow you to purchase and download the FULL unlimited version of the Refunds Today Quick Refund Estimator. Or, at any time, you can logon to the Refunds Today website at www.refundstoday.com and click on 2015 Catalog to purchase.   

If you have any questions or any issues with downloading the 2015 Refunds Today Tax Estimator, please do not hesitate to contact Refunds Today at 323-261-0240

Deadline Approaching for Voluntary IRS Registration

As you already know, the IRS has launched a new program that promotes the importance of education and filing season preparedness. The Annual Filing Season Program (AFSP) has had a HUGE response from the Tax Professional community regarding this education and certification, much more than originally expected. Those who complete the required amount of continuing education credits, covering such topics as ethics, tax law updates, federal tax law, and tax filing issues, and pass a comprehensive test, will receive a "Record of Completion" AND be listed in a database on the IRS website.  The deadline to complete this course is 12/31/2015.  Don't be the only preparer in your area not to be listed on the IRS website!

Tax Professionals who elect to participate in the program would receive the following benefits:

• The IRS will issue a "Record of Completion" once all requirements are fulfilled.
• Inclusion in the "Directory of Federal Tax Return Preparers with Credentials and Select Qualifications" on the IRS.gov website to help taxpayers determine return preparer qualifications.
• Beginning January, 2016, only non-credentialed tax return preparers who have a record of completion under the Annual Filing Season Program will be permitted to represent taxpayers before the IRS during an examination of a return that they signed or prepared.

Refunds Today has created an IRS approved AFSP course which covers all required topics to comply with the new IRS education platform.  Simply login to the Refunds Today website at www.refundstoday.com, click on the 2015 Catalog tab and select IRS AFSP Continuing Education under the Tax Education section. Our Full IRS AFSP Continuing Education Course is only $99.

For more information regarding this new program, please click on the following link that will direct you to the IRS website.
http://www.irs.gov/Tax-Professionals/Annual-Filing-Season-Program

If you have any questions about the AFSP course or our offering, please contact your Sales Executive at 877-334-5366.

Bank Modules are Available

All Bank Modules for 2015 are now available for download.

Refunds Today recommends you download and install these updates 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 “Other Module Updates” and then choose Your Bank Module to begin the download

Should you have any questions or need assistance please do not hesitate to contact a Refunds Today Customer Support Representative at 323-261-0240.

Top IRS Individual Reject Codes

1. R0000-504-01: Each ‘Dependent SSN’ and the corresponding ‘DependentNameControl’ that has a value on Line 6c(2) of the return, must match the SSN and Name Control in the e-File database
   -          The IRS checks the Social Security number against the name control which is usually the first 4 letters of the last name. Verify the dependent’s last name and Social Security number against what they have on the Social Security card. If the card matches exactly, have the taxpayer contact the Social Security Administration at: 1-800-772-1213 to correct the Social Security Administration’s records.  It takes Approximately 2 weeks to update in the efile database.
2. R0000-507-01: ‘Dependent SSN’ on Line 6c(2) of the return was used as a Dependent SSN in a previously filed tax return for the same tax period.
   -          Someone has already filed a return listing this person as a dependent. You cannot electronically file the return with this dependent listed. If the taxpayer believes this reject is in error, you can leave the rejected dependent on the return and mail a paper return.
3. Seic-F1040-501-01: Each ‘QualifyingChildNameControl’ that has a value on Schedule EIC(Form 1040A or 1040), Line 1, and ‘QualifyingChildSSN’ that has a value on Line 2, must match that in the e-File database.
   -          You will see this together with the first reject (R000-504-01) because the IRS checks both the dependent information and the information you submit for the Earned Income Credit. If the name does not match on one, it does not match on the other either. The IRS does not just check one, because sometimes you can have a qualifying child for the earned income credit who is not a dependent. These both mean that the Social Security number and the name don’t match what the IRS has on file. As with the reject R0000-504-01, verify the Social Security number and the name with the Social Security card, and if they match, have the taxpayer contact the Social Security Administration to correct their information.
4. R0000-500-01: ‘PrimarySSN’ and ‘PrimaryNameControlTxt’ in the Return Header must match the e-File database.
   -          This is another reject for the mismatch for the name, but in this case it is for the Taxpayer. Correct this reject by verifying the name and the Social Security number with the SS card. If it matches exactly as it was typed, then have the Taxpayer contact the Social Security Administration to get the information corrected in their system. This could take up to 2 weeks to update. They can contact the Social Security Administration at: 1-800-772-1213.
5. FW2-502: Form W-2, Line B ‘EmployerEIN’ must match data in the eFile database.
   -          This is another mismatch, but this one is for the employer listed on the W2. Verify the employer Id number entered on the W2 against the actual document supplied by taxpayer. If it is incorrect, reenter the information and resubmit the efile. If the information matches the actual document, have the taxpayer contact the issuer of W2 to verify that the EIN listed is the actual number.
6. IND-031-01: ‘PrimaryPriorYearPIN’ or ‘PrimaryElectonicFilingPIN’ or ‘PrimaryPriorYearAGIAmt’ in the Return Header must match the e-File database.
   -          The prior year information entered for the taxpayer doesn't match what the IRS has on file. Verify what is entered for the prior year pin or agi, matches what is on the original prior year tax return. You can also use the practitioner pin option as an alternative, because it doesn't require prior year information.
7. R0000-503-01: Taxpayer TIN in the Return Header must not be the same as a TIN of a previously accepted electronic return for the return type and tax period indicated in the tax return.
   -          A return with the same Social Security number for the same filing year has already been accepted by the IRS. If you believe this is a mistake, you can paper file the return. If you believe the taxpayer is a victim of identity theft, visit the following website to help the taxpayer take action:
   -          https://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft
8. SEIC-F1040-506-01: Each ‘QualifyingChildSSN’ that has a value on Schedule EIC (Form 1040A or 1040), Line 2 must not be equal to another Qualifying Child SSN on another accepted return for the same tax year.
   -          You will also see this reject along with 0000-507-01, where the dependent Social Security number was already used on a return. Somebody has already filed a return claiming this
   -          Social Security number for the Earned Income Credit. The taxpayer must remove the dependent as a qualifying child for the earned income credit, to be eligible for electronic filing. If the taxpayer believes this to be in error, leave the dependent listed for the qualifying child and mail a paper return.
9. F1040-512: Each Dependent’s SSN on this return cannot be used on another return as a Primary or Secondary SSN with Line 6a checkbox ‘ExemptPrimaryInd’ or Line 6b checkbox ‘ExemptSpouseInd’ checked on that return.
   -          This reject means that the Social Security number for the dependent that you listed has already been used on a return where this person claimed his/her own exemption. Verify the dependents rejected Social Security number matches the Social Security card. If the information matches exactly, then remove the dependent in order to be able to efile the return. If the taxpayer believes the reject to be in error, then leave the dependents information and file a paper return. The dependent may also need to file an amended return removing the exemption. The taxpayer can also contact the IRS at: 1-800-829-1040 for additional instructions.
10. IND-046: The IRS e-File database indicates that the filer must file Form 8862 to claim the Earned Income Credit because it was previously disallowed, but the return does not include Form 8862.
    -         This taxpayer is claiming Earned Income Tax Credit and has been denied this credit in a prior tax year. You must add Form 8862 to the return to be reconsidered for claiming the Earned Income Tax Credit. Once you have added and completed Form 8862, you will need to re-create and re-submit the e-File.
11. SEIC-F1040-535-01: Each Qualifying child's social security number that has a value on Schedule EIC and the Qualifying Child Year of Birth must match what is on file in the IRS e-File database.
    -         Verify the qualifying child's Year of Birth on the child's birth certificate. If the actual birth certificate matches your entries exactly, have the Taxpayer contact the Social Security Administration at 1-800-772-1213 to correct the Social Security Administration records. This process takes approximately two weeks for the information to be updated in the IRS e-File database.

Retirees May Face April 1, 2015 Deadline for RMDs

Federal Tax Day - Current,I.1,Retirees May Face April 1, 2015 Deadline for RMDs (IR-2015-55),(Mar. 20, 2015)

The IRS has reminded retirees who turned 70 ½ during 2014 that they may need to begin receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement accounts by Wednesday, April 1, 2015. The April 1 deadline only applies to the first year; the RMD for subsequent years must be made by December 31. A taxpayer who turned 70 ½ in 2014 would receive the first required payment on April 1, 2015, and the second one by December 31, 2015. Worksheets and life expectancy tables for making the computation can be found in IRS Publication 590-B. Affected taxpayers who turned 70 ½ during 2014 must figure the RMD for the first year using their life expectancy as of their birthday in 2014 and their account balance on December 31, 2013.

Some owners of workplace plans can wait longer to receive RMD. Employees who are still working can wait, if their plans allow, until April 1 of the year after they retire to begin receiving distributions. Employees of public schools and certain tax-exempt organizations with Code Sec. 403(b) plan accruals prior to 1987, should check with their employers, plan administrators or providers with respect to treatment of the accruals. Taxpayers are encourages to begin planning for distributions that may be required in 2015.

Reference

IR-2015-55

1120 Business Returns Filing Deadline

Tax Year 2014 Business Returns - Form 1120 Family

2014 e-file Calendar
Transmitting timely filed Form 1120 family returns and Forms 7004	Calendar Year	March 16, 2015
Transmitting timely filed Form 1120 family returns and Forms 7004	Fiscal Year	15th day of third month after Tax Year end
Retransmission rejected timely filed Form 1120 family returns and Form 7004	Both	10 day perfection period
Transmitting returns on extension from Forms 7004	Calendar Year	September 15, 2015
Transmitting returns on extension from Forms 7004	Fiscal Year	15th day of ninth month after Tax Year end
Retransmitting rejected returns on extension from Forms 7004		10 day perfection period

Extensions

Don't miss out on a chance to increase your Income Tax profits! Begin e-filing your client's Business extensions.  You can increase your profits and provide better customer service by offering your clients the peace of mind that the 7004 provides.

• Assurance that the IRS will receive the extension on time, as you will receive an IRS acknowledgement receipt
• Assurance that the extension will not be "lost in the mail"
• Best of all, it's fast and easy to e-file extensions

7004 General Information

It is suggested to submit any extensions by 10:00 PM YOUR local time on the filing deadline. The last day to retransmit rejected timely filed Forms 1120 or Extension Forms 7004 and gain IRS acceptance is 10 days after the required filing date for your particular type of return.   The cost for each E-filed extension is $5.00.

7004 Instructions

1.     Open the return for which you wish to complete the extension and fill in the information regarding the company name.

2.     Select Yes to the Do you want to electronically file this return? question.

3.     Select either Form 7004 without direct debit or Form 7004 with direct debit for the What form(s) are you e-filing using PINs? question.

4.     Complete the information on Page 1 of the 1120 for the Signing officer for e-filing, Officer Information, and Preparer Information.

5.     On Form 7004, select the check box at the top of the page to indicate you are using this form.

6.     Run diagnostics and correct any errors you may receive.

7.     Click Extension E-File to create an e-file.

8.     Close the return, and then select Send Federal/State Returns to on the Communications menu.

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.

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.

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.

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.

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

California Individual 2014.2 Now Available

The following updates are currently available:

California Individual 2014.2

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"
• For 1040 State Software, in the Left Pane select "1040 State Updates" and then choose the states to download.
• If updating Business States, in the Left Pane select "Business State Updates" and then choose the states to download.

Should you have any questions or need assistance please do not hesitate to contact a Refunds Today Customer Support Representative at 323-261-0240.

Updated Refunds Today Affordable Care Act Resource Page

Refunds Today would like to remind you of our Affordable Care Act (ACA) Information page that can be found on the Refunds Today website.  Here we have gathered a collection of tutorials, worksheets, flowcharts, and important website links that will help you in determining any tax consequence of your customer's ACA scenario.

Also, our final two remaining Affordable Care Act webinars will be held this Thursday, January 15^th and next Wednesday, January 21^st, both at 9:00 AM Pacific Standard Time.

Since each taxpayers ACA situation is unique, Refunds Today representatives and tax analysts cannot make any tax determinations on behalf of your customers.  Please use the provided ACA resources as well as others you may find in making this determination.  Once you have made this determination, we will be happy to assist you in properly entering it into the Refunds Today software.

You can easily access this page in a variety of manners:

• Use the Affordable Care Act Information link found on the Launchpad of the 2014 Refunds Today tax software

• Login to the Refunds Today website and click on the "ACA Info" link in the left pane of the Dashboard

Some of the information you will be able to find is:
Tutorials

• Form 1095-A Health Insurance Marketplace Statement
• Affordable Care Act - Overview
• Affordable Care Act - Guide to Government Resources
• Refunds Today ACA Software Examples

Flowcharts

• Insurance All Year Flowchart
• Insurance Part-Year Flowchart
• No Insurance All Year Flowchart

Website Links

• IRS.gov
• HealthCare.gov
• Covered California
• Journal of Accountancy

Refunds Today will continue to update this page with new and pertinent information as more becomes available.  Be sure to check back.

IRS Announces Start of E-File Controlled Launch (HUB Testing)

The IRS has announced the opening of their Controlled Launch (HUB Testing) which allows returns to be sent to the IRS so all parties can test their submission paths.   Refunds Today will begin participating in this controlled launch of e-file today, Monday, January 12^th with the returns that have already been sent to the Electronic Filing Center (EFC).

Even though you now have the ability to submit tax returns to the IRS and some will be submitted through the Controlled Launch process, we strongly advise holding your completed returns and submitting them closer to the January 20^th start date - as this will give the IRS additional time to take care of any possible processing issues.

Not all e-files that have been received will be sent immediately. We can only send the maximum allowable number per day as set by the IRS during this testing period. We will begin by sending small batches of e-files while our test facilitator watches them process through the MeF system.  The IRS takes this opportunity to watch the batch process through their system.  They will return acknowledgements at some point during this process.

Once acknowledgments are received, they  will be processed and made available. This will allow us to determine the potential reject patterns and identify any global issues, should they exist, with these first submissions.

The IRS has asked that we remind all EROs of the following:

• The IRS will not process tax returns before January 20^th
• This means the time frame for issuing refunds will begin on January 20^th. The IRS issues most refunds in less than 21 days from the day they receive the tax return for processing.
• Even though the IRS issues most refunds in less than 21 days, it is possible a tax return may require additional review and take longer.
• Beginning January 30^th, your customer can use the improved Where's My Refund? tool, which this year will provide personalized information about your customers tax return.

More info: http://www.irs.gov/Refunds        
Refunds Today Support

44 Individual and 44 Business State Modules Now Available

Refunds Today recommends you download and install these updates 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”
• For 1040 State Software, in the Left Pane select “1040 State Updates” and then choose the states to download.
• If updating Business States, in the Left Pane select “Business State Updates” and then choose the states to download.

Form 1040 Module Update Now Available

Refunds Today recommends you download and install this updates 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 "Form 1040 Update" update to begin the download.

Should you have any questions or need assistance please do not hesitate to contact a Refunds Today Customer Support Representative at 323-261-0240.

Please note that you must download and install System Update 2014.29.03 PRIOR TO INSTALLING THIS UPDATE.

1120, 1120S, 1065 Module Updates Now Available!

Refunds Today recommends you download and install these updates 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 “Business Module Updates” and then choose the appropriate update to begin the download.

Should you have any questions or need assistance please do not hesitate to contact a Refunds Today Customer Support Representative at 323-261-0240.

Please note that you must download and install System Update 2014.29.03 PRIOR TO INSTALLING THESE UPDATES.

System Update 2014.29.03 has been released.

System Update 2014.29.03 has been released.   

This System Update is a required update.  You should download and install it as soon as possible.  Several other updates will be released this week that require you to install this update first.