TaxWise Online Update: Scheduled Maintenance - December 30, 2021

As part of a scheduled maintenance release to prepare for the upcoming Tax Season, please be advised that the TaxWise team will be updating the TaxWise Online application during the evening of Thursday, December 30, 2021 starting at 10pm ET.

The update will take less than an hour and during the scheduled maintenance TaxWise Online will be unavailable.

Reminder - Partner Verification Refresh

In order to be prepared and ready for Pre-Ack beginning January 2, 2022, this is a reminder to refresh Partner Verification to confirm your banking enrollment information (Partner, Product, and Fees) is correct in the TaxWise Desktop and TaxWise Online Applications.

TaxWise Desktop - Steps for Partner Verification:

1 -- Log in as Admin in Taxwise Desktop

2 -- Select ‘Tools > Utilities/Setup Assistant’

3 -- From the Utility window select ‘Setup > Setup Assistant’

4 -- Select ‘Partner Verification’

5 -- Select the ‘Refresh Data’ button

6 -- Confirm partner verification:

Once Partner Verification is refreshed, the page will show current updated Partner Verification data with your bank partner’s information. Please verify and confirm all fees and product selections are correct in the TaxWise desktop application.

TaxWise Online -- Steps for Partner Verification

1 -- In the upper left, Select the ‘Loggedin User>Settings’

2 -- Select ‘Partner Verification’

3 -- Confirm Partner Verification data under ‘Settlement Solutions’

 

If you have any questions, please contact customer support via any of these options:

1. Chat at SFS TaxWise Chat (cch.com)
2. Open a Support case at https://support.cch.com/
• Select the option that best describes your issue and complete all applicable information. Our support team will research your issue or question and contact you with an answer.
3. Phone at 866-641-9473.

E-file Reporting - Annual Maintenance begins December 28, 2021 @10:00 PM EST

All e-filing reporting will stop on Tuesday, December 28, 2021 @ 10:00pm EST to perform annual maintenance. 

E-file reports are found at: "My Information > Reports"  on the Support Site. 

After December 28th, EFC reporting will not be available until the reporting maintenance is completed in mid-January.

Pre-Acknowledgement Availability and Bank Product Season Readiness

January 2nd, 2022, marks the beginning of the tax season for those of you offering Pre-acknowledgement (Pre-ack) advances through TPG and Republic Bank. Pre-ack with these banks will begin at 12pm ET on January 2nd, 2022.

Please note: For MetaBank Customers, Pre-ack begins on January 3rd, 2022, 12pm ET.

If you haven’t enrolled to offer bank products yet, our partners are still open and accepting enrollment applications for all products.

Once you have enrolled, check out our FAQ below for pre-ack advance products.


How do I apply for Pre-ack inside of the return?
On the main information, select bank products and check the box for the appropriate bank (your active bank). You will then visit the bank application and complete the necessary steps, including selecting advance and the taxpayers preferred disbursement. Once that is completed, you will efile the return.

What is EFC reject 91?
EFC 91 is an EFC reject you will receive when the bank rejects the Pre-ack return. To fix these rejects print the ack report and search for the bank rejection, this will tell you what the reject is and you can fix and resend.


For additional information on the bank enrollment process, please visit our enrollment site by logging into the Support Site and clicking “My Account> Enroll in Bank Products.”

1. Complete the Enrollment Agreement
2. Complete Office Info
3. Select your Providers and Complete Provider Info
4. Send Applications

Once the bank approves your application, your status will be updated on the Support Site.


If you have any questions, please contact customer support via any of these options:

1. Chat at SFS TaxWise Chat (cch.com)
2. Open a Support case at https://support.cch.com/
• Select the option that best describes your issue and complete all applicable information. Our support team will research your issue or question and contact you with an answer.
3. Phone at 866-641-9473.

TaxWise - Holiday Hours - Final week of December 2021

 2021 is coming to a close...

This is a reminder that the TaxWise offices will be closed:

• Friday, December 31st

SUPPORT

If you require Support assistance on Friday 12/31, please enter a web ticket through this link and we will respond when normal business hours resume.

Find answers to your questions in our Knowledge Base.

Please feel free to Contact Us online if you have any questions.

Please Note:  Support will be open and available on Sunday January 2, 2022, 10am-6pm ET for Chat and Support tickets only.  

1. Chat at SFS TaxWise Chat (cch.com)
2. Open a Support case at https://support.cch.com/
• Select the option that best describes your issue and complete all applicable information. Our support team will research your issue or question and contact you with an answer.

SALES

If you have not purchased or renewed TaxWise for Tax Year 2021, please keep the Friday, 12/31 closure in mind.  You can contact your Account Manager at 800-495-4626 to get setup for the 2021 season. 

The TaxWise team wishes you a happy and safe holiday season!  And a very successful Tax Season. 

IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments

 December 22, 2021

Full Article

WASHINGTON — The Internal Revenue Service announced today that it will issue information letters to Advance Child Tax Credit recipients starting in December and to recipients of the third round of the Economic Impact Payments at the end of January. Using this information when preparing a tax return can reduce errors and delays in processing.

The IRS urged people receiving these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022.

Watch for advance Child Tax Credit letter

To help taxpayers reconcile and receive all of the Child Tax Credits to which they are entitled, the IRS will send Letter 6419, 2021 advance CTC, starting late December, 2021 and continuing into January. The letter will include the total amount of advance Child Tax Credit payments taxpayers received in 2021 and the number of qualifying children used to calculate the advance payments. People should keep this and any other IRS letters about advance Child Tax Credit payments with their tax records.

Families who received advance payments will need to file a 2021 tax return and compare the advance Child Tax Credit payments they received in 2021 with the amount of the Child Tax Credit they can properly claim on their 2021 tax return.

The letter contains important information that can make preparing their tax returns easier. People who received the advance CTC payments can also check the amount of their payments by using the CTC Update Portal available on IRS.gov.

Eligible families who did not receive any advance Child Tax Credit payments can claim the full amount of the Child Tax Credit on their 2021 federal tax return, filed in 2022. This includes families who don't normally need to file a tax return.

Economic Impact Payment letter can help with the Recovery Rebate Credit

The IRS will begin issuing Letter 6475, Your Third Economic Impact Payment, to EIP recipients in late January. This letter will help Economic Impact Payment recipients determine if they are entitled to and should claim the Recovery Rebate Credit on their tax year 2021 tax returns that they file in 2022.

Letter 6475 only applies to the third round of Economic Impact Payments that was issued starting in March 2021 and continued through December 2021. The third round of Economic Impact Payments, including the "plus-up" payments, were advance payments of the 2021 Recovery Rebate Credit that would be claimed on a 2021 tax return. Plus-up payments were additional payments the IRS sent to people who received a third Economic Impact Payment based on a 2019 tax return or information received from SSA, RRB or VA; or to people who may be eligible for a larger amount based on their 2020 tax return.

Most eligible people already received the payments. However, people who are missing stimulus payments should review the information to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2020 or 2021.

Like the advance CTC letter, the Economic Impact Payment letters include important information that can help people quickly and accurately file their tax return.

More information about the Advance Child Tax Credit, Economic Impact Payments and other COVID-19-related tax relief may be found at IRS.gov.

As the 2022 tax filing season approaches, the IRS urges people to make sure an accurate tax return and use electronic filing with direct deposit to avoid delays.

Client Accounting Suite/Premier version 21.1 is available

 The 21.1 version of CAS is now available from the Solution Center or via the auto-update feature in CAS. It includes the following regulatory updates.

Regulatory Updates

The following regulatory information is now available for Client Accounting Suite and Client Accounting Suite Premier:

• 2021 Federal Forms update
• 940
• The 943 and 944 will be included in a future update.
• W-2, W-3, 1096, 1098 and 1099s
• 1099-NEChas been added to the list of available 1099s for reporting to IRS through the Combined Fed/ State program.
•  Reminder that W-2, W-3 and 1099- NEC, both printed and electronic must be filed by
  January 31, 2022.
• W-2 and 1099 federal and state electronic filing formats.
• Review the Year End Guide (available on the Help menu) for all end-of-year questions and procedures.

Note: 1094-B and 1094-Cand their transmittal forms will be provided in a future update.

Important: All 1099/ 1096 forms submitted to the IRS must be printed on the red ink approved forms.
Failure to comply with this may result in fines or rejections. To order the 1099/ 1096 red ink forms for
Client Accounting Suite, call Nelco at 1-800-266-4669.

• 2022 Federal Withholding Rates
• The 2022 Federal withholding rates have not been finalized for 2022. We will include in a future update.
•  For 2022, the employee and employer tax rate for Social Security continues at 6.2%. The
  Social Security wage base increases to $147,000.
  
•  The Medicare Tax rate remains at 1.45% for 2022. There is no wage base limit for Medicare tax.
• The Additional Medicare tax of 0.9% continues for 2022 on earnings over $200,000 for all taxpayers.
• 2022 State Withholding Rates - The following state withholding calculations have been updated
  for 2022:
  
• California
• Georgia
• New York
• New York - Yonkers
• Oregon
• Wisconsin
• Note:  As other states change their rates for 2022, we will provide updates on the support website.
• Reminder: Be sure to update the state wage limit in the State Setup before processing payrolls for 2022.
• Review the Year End Guide for all Regulatory quest ions and procedures. The Year End Guide is available on-line in PDF format from the Help Menu.

Scheduled Updates

• January 2022 - Client Accounting Suite 21.2 - State Withholding and form updates

Reminder for Week of 12/20: EFC and IRS E-filing Shutdown for TY 2018-2020 - Business Returns

 Please take note of this important information about electronic filing.

IRS has announced its MeF (e-file) shutdown and cutover for Tax Year 2021. To ensure that all business tax returns e-filed through the MeF system are processed in a timely manner, submissions must occur before IRS shuts down the system on Sunday, December 26, 2021, at 11:59 a.m. Eastern time.

Electronic Filing Center (EFC) Maintenance/Shutdown 

To prepare for the upcoming season and to ensure that all business returns for tax year 2020 are processed timely, Wolters Kluwer will shut down the Electronic Filing Center (EFC) on Tuesday, December 21, 2021, at 11:00 PM EST (in advance of the IRS Business E-filing Shutdown) for the following returns:

• Partnership (1065)
• Corporation (1120)
• S Corporation (1120S)
• Fiduciary (1041)
• Employee Benefit Plans (5500)
• Exempt Organization (990 Series)
• 94X Series

All other return types not listed including state, local, and school district returns
This maintenance will end no later than the date that the IRS opens for tax year 2021, which is yet to be announced. During this maintenance period, you will NOT be able to:

• Transmit returns
• Receive acknowledgements (acks)

Final Day for Electronic Filing of 2018 Returns

Tuesday, December 21, 2021, is the final day that tax year 2018 returns can be electronically filed. Any acknowledgements must be retrieved by the user no later than December 26, 2021 at 11:00 PM EST for TY18 e-files. EFC for TY18 will not be available after December 26, 2021 at 11:00 PM EST to pick up these acks.

Reminder: TaxWise - December 2021 Holiday Hours

This is a reminder that the TaxWise offices will be closed:

• Friday, December 24th
• Friday, December 31st

SUPPORT

If you require Support assistance during those days, please enter a web ticket through this link and we will respond when normal business hours resume.

Find answers to your questions in our Knowledge Base.

Please feel free to Contact Us online if you have any questions.

SALES

If you have not purchased or renewed TaxWise for Tax Year 2021, please keep those holiday closure dates above in mind.  You can contact your Account Manager at 800-495-4626 to get setup for the 2021 season. 

Wolters Kluwer wishes you a happy and safe holiday season!  And a very successful Tax Season. 

NC Business Recovery Grant Program

  NC is pleased to announce that the application and webpage is now available on NCDOR's website. The deadline to apply is January 31, 2022.

 

The program will issue a one-time payment to eligible North Carolina businesses that experienced significant economic loss due to COVID-19. Two types of grants will be available to eligible businesses that suffered an economic loss of at least 20 percent during the pandemic:

• A hospitality grant will be available to an eligible arts, entertainment, and recreation business, as well as an eligible accommodation or food service business such as a hotel, restaurant, and bar.
• A reimbursement grant will be available to an eligible business not classified in NAICS Code 71 and 72 and that did not receive funding from other relief programs including Paycheck Protection Program, COVID-19 Job Retention Grant, and EIDL Advance.

 We are looking for partners to assist us with outreach so that all eligible NC business owners have the opportunity to apply.

• Use the attached Outreach Toolkit and Flyers to raise awareness of the program throughout your networks. It contains highly useful details about the program and application process, FAQs, and example language to use on social media.
• If you'd like to host an event with NCDOR for your members or have someone from NCDOR speak at your events, please contact me as soon as possible. NCDOR will do everything it can to accommodate any requests.

Advance Child Tax Credit Payments (ACTCPs) – Letter 6419 due out in January

 Did your customers receive at least one (1) Advance Child Tax Credit Payment (ACTCP) over the summer/fall of 2021?

If so, the IRS will be sending them Letter 6419 in January. The information in this letter is important as you prepare your customers’ 2021 tax return.  It shows the total amount of payments received, which will assist in calculating what they are eligible for as part of their TY 2021 taxes.  If the taxpayer(s) do not have their 6419, the payment amounts can also be found in the CTCUp Portal.  Many taxpayers like to file as early as possible so authenticating through the portal may be the fastest way to ensure the accuracy of these payments when filing for 2021.

If the accurate amounts from the 6419 letter or CTCUp (for both taxpayer and spouse, if applicable) are not entered, the return will fall into error processing by IRS, delaying the refund deposit. 

For more info, please visit the IRS Site, Advance Child Tax Credit Payments. 

Reminder: EFC and IRS E-filing Shutdown for TY 2018-2020 - Business Returns

Please take note of this important information about electronic filing.

IRS has announced its MeF (e-file) shutdown and cutover for Tax Year 2021. To ensure that all business tax returns e-filed through the MeF system are processed in a timely manner, submissions must occur before IRS shuts down the system on Sunday, December 26, 2021, at 11:59 a.m. Eastern time.

Electronic Filing Center (EFC) Maintenance/Shutdown 

To prepare for the upcoming season and to ensure that all business returns for tax year 2020 are processed timely, Wolters Kluwer will shut down the Electronic Filing Center (EFC) on Tuesday, December 21, 2021, at 11:00 PM EST (in advance of the IRS Business E-filing Shutdown) for the following returns:

• Partnership (1065)
• Corporation (1120)
• S Corporation (1120S)
• Fiduciary (1041)
• Employee Benefit Plans (5500)
• Exempt Organization (990 Series)
• 94X Series

All other return types not listed including state, local, and school district returns
This maintenance will end no later than the date that the IRS opens for tax year 2021, which is yet to be announced. During this maintenance period, you will NOT be able to:

• Transmit returns
• Receive acknowledgements (acks)

Final Day for Electronic Filing of 2018 Returns

Tuesday, December 21, 2021, is the final day that tax year 2018 returns can be electronically filed. Any acknowledgements must be retrieved by the user no later than December 26, 2021 at 11:00 PM EST for TY18 e-files. EFC for TY18 will not be available after December 26, 2021 at 11:00 PM EST to pick up these acks.

IRS Announces Delays in E-file Application Processing Time

 Please see the announcement below from the IRS

The IRS is experiencing delays affecting the processing of e-file Applications. You do not need to take any actions. In lieu of calling the e-help desk, continue to monitor your e-file application through e-services on IRS.gov.

We are working diligently to ensure e-file applications are processed in time for participation in the upcoming filing season.

We apologize for any inconvenience this may cause.

TaxWise - December 2021 Holiday Hours

The holidays are here and the New Year fast approaches.  This is a reminder that the TaxWise offices will be closed:

• Friday, December 24th
• Friday, December 31st

SUPPORT

If you require Support assistance during those days, please enter a web ticket through this link and we will respond when normal business hours resume.

Find answers to your questions in our Knowledge Base.

Please feel free to Contact Us online if you have any questions.

SALES

If you have not purchased or renewed TaxWise for Tax Year 2021, please keep those holiday closure dates above in mind.  You can contact your Account Manager at 800-495-4626 to get setup for the 2021 season. 

Wolters Kluwer wishes you a happy and safe holiday season!  And a very successful Tax Season.

IRS FIRE System shuts down tonight.

 We apologize for any inconvenience that this may cause you.  

We were just made aware that the IRS FIRE system is shutting down tonight at 6 PM EST and will not reopen until January 4th, 2022.  If you transmit any 1099 returns after 5 PM EST tonight you will receive an EFC Reject 49.  If you transmitted a return yesterday or earlier today, then you may not receive an acknowledgement until the FIRE System reopens in January.

TaxWise - Scheduled Maintenance

The TaxWise team will be performing overnight scheduled maintenance on the dates/times below. Maintenance is scheduled to begin around 10pm ET and may last four to eight hours.  Customers may experience delays during the maintenance periods. 

• Tuesday, November 30^th, 10:00pm ET 
• Thursday, December 2^nd, 10:00pm ET 
• Tuesday, December 7^th, 10:00pm ET 

TaxWise 2021 is now available

The TaxWise product team is pleased to announce that TaxWise Online and TaxWise Desktop 2021 are now available. Take advantage of the latest features of TaxWise 2021.

TaxWise Online:

• Point your browser to Taxwise Online for 2021 

TaxWise Desktop:

• Install the new version of TaxWise at your earliest opportunity. Simply visit the TaxWise Support site to download your software. 

Logging into TaxWise Solution Center (Support Site)
A few helpful links to get to our Support Site:

• Returning customers - If you are a returning customer and can't remember your Support Site password, see instructions for resetting your login password. 
• New customers - See our Support Site initial login instructions. 

Contact-less Tax Preparation Fee Payment Options and Bank Enrollment Open
Do you need new contactless ways to collect your tax preparation fees? We have you covered with the most settlement solution offerings in the industry; ranging from traditional bank products, low cost options and programs to help you collect your tax prep fees at no cost to your taxpayer. Enroll on the support site today! 


Other Product Downloads 
If you have purchased other products in the TaxWise suite or one is included with your TaxWise package, these are also available for download on the support site.  Simply log into the Support Site and Click on the "Downloads" menu item :

• Payroll Compliance Reporting (W2/1099)
• Client Accounting Suite
• PaperlessPLUS

Start the year off right with the "Getting Started" information
To make sure you're completing your product setup correctly and that you start TY2021 off right, take a look at these "getting started" pages, as applicable:

• Getting Started with TaxWise 2021 
• Getting Started with Payroll Compliance Reporting

Need a refresher?
For additional detailed instruction on many TaxWise features, visit our Learning Portal:

• TaxWise Online
• TaxWise Desktop 

IRS News: Scheduled Maintenance for the Modernized e-File (MeF) Production System

Please be advised that the MeF Production System will be unavailable for business e-File submissions from 7:00 a.m. through 5:00 p.m. Eastern time on Saturday, November 27, 2021.

During this time you can still transmit returns to the Electronic Filing Center (EFC) and we will hold the e-files until the IRS restores service. You will not receive any acks during this time.

For more info, please visit The IRS announcement.

Taxwise Support Site Updates

 As a part of our ongoing commitment to provide our customers with an intuitive and organized experience with our Support Resources, the TaxWise Support Site has been enhanced.  The site is now easier to navigate and promotes use of our self-help tools.

Below is a brief description of the changes made.

Click here to go to the Support Site. 

UPDATES

1.  TaxWise Solution Page

The menu options are now present on the Solution Center before you login.

2.  My Information Menu

• The My Account menu has been brought under the My Information menu.
• Shipping Schedule has been removed
• Partner Services has been moved to the new “Business Partners” Menu

 

3.  Support Menu

• Reorganized the menu options to provide self-service options closer to the top

 

4.  Downloads Menu

• Reorganized menu option
• Return Retrieval added to this menu (moved from Support Menu)

 

5.  E-File Menu

• Reorganized menu options

6.  Training Menu

• Added “Client Portal Learning Portal”
• Added “Education and CPE” option with links to the Small Firm offerings of CPELink products

 

7.  “Tax NA” Menu(Now “Tax & Accounting”)

• “Tax NA” Menu has been renamed to “Tax & Accounting”

8.  NEW! “Business Partners” Menu

• New menu added with quick links to all partner information.

9.  NEW! “I Want To” Menu

• New menu added as quick action guide for most used menu topics

URGENT REMINDER THIS EVENING!: EFC and IRS E-filing Shutdown for TY 2018-2020 - Individual Returns

URGENT REMINDER

EFC and IRS E-filing Shutdown for TY 2018-2020 - Individual Returns

IRS has announced its MeF (e-file) shutdown and cutover for Tax Year 2021. To ensure that all Form 1040 tax returns e-filed through the MeF system are processed in a timely manner, submissions must occur before IRS shuts down the system on Saturday, November 20, 2021, at 11:59 p.m. Eastern time.

In order to allow the states ample time for processing these returns, the Wolters Kluwer E-File Center (EFC) will stop accepting individual returns (both federal and state) for the current processing year on Tuesday, November 16th at 11:59 pm Eastern Time.

1040 E-file submissions for Tax Years 2018, 2019 and 2020 are included in this change. Because not all state agencies process returns in “real-time”, this schedule should allow sufficient time for agencies to post their acknowledgements for the WK EFC to pick up. 

After the shutdown occurs, the WK EFC will not accept individual returns (federal and/or state) until IRS comes back online in early January 2022. However, preparers can continue picking up acknowledgements through mid-December.

Important to Note:

• Tax Year 2018 returns will no longer be eligible for e-filing by the WK EFC after Tuesday, November 16th at 11:59 pm Eastern Time. Any acknowledgements must be retrieved by the user no later than mid-December for TY18 e-files. EFC for TY18 will not be available after mid-December 2021 to pick up these acks.

• Business Returns: Business returns are not affected by this schedule as IRS has not yet announced the business cutover schedule and will do so at a later time.

• Disaster Relief Extension to File: This shutdown will also affect taxpayers who received a disaster relief extension to file. If the disaster extended due date falls within this shutdown time frame, you must do one of the following:
• Submit the returns electronically before the shutdown begins.
• Hold the return and transmit it when the IRS reopens in January.
• File them on paper after the shutdown.  If filed on paper, applicable opt-out documentation may be necessary. Please consult the taxing authority guidelines on how to opt-out of electronic filing.

Reminder Tomorrow: EFC and IRS E-filing Shutdown for TY 2018-2020 - Individual Returns

  IMPORTANT REMINDER

EFC and IRS E-filing Shutdown for TY 2018-2020 - Individual Returns

IRS has announced its MeF (e-file) shutdown and cutover for Tax Year 2021. To ensure that all Form 1040 tax returns e-filed through the MeF system are processed in a timely manner, submissions must occur before IRS shuts down the system on Saturday, November 20, 2021, at 11:59 p.m. Eastern time.

In order to allow the states ample time for processing these returns, the Wolters Kluwer E-File Center (EFC) will stop accepting individual returns (both federal and state) for the current processing year on Tuesday, November 16th at 11:59 pm Eastern Time.

1040 E-file submissions for Tax Years 2018, 2019 and 2020 are included in this change. Because not all state agencies process returns in “real-time”, this schedule should allow sufficient time for agencies to post their acknowledgements for the WK EFC to pick up. 

After the shutdown occurs, the WK EFC will not accept individual returns (federal and/or state) until IRS comes back online in early January 2022. However, preparers can continue picking up acknowledgements through mid-December.

Important to Note:

• Tax Year 2018 returns will no longer be eligible for e-filing by the WK EFC after Tuesday, November 16th at 11:59 pm Eastern Time. Any acknowledgements must be retrieved by the user no later than mid-December for TY18 e-files. EFC for TY18 will not be available after mid-December 2021 to pick up these acks.

• Business Returns: Business returns are not affected by this schedule as IRS has not yet announced the business cutover schedule and will do so at a later time.

• Disaster Relief Extension to File: This shutdown will also affect taxpayers who received a disaster relief extension to file. If the disaster extended due date falls within this shutdown time frame, you must do one of the following:
• Submit the returns electronically before the shutdown begins.
• Hold the return and transmit it when the IRS reopens in January.
• File them on paper after the shutdown.  If filed on paper, applicable opt-out documentation may be necessary. Please consult the taxing authority guidelines on how to opt-out of electronic filing.

Reminder: EFC and IRS E-filing Shutdown for TY 2018-2020 - Individual Returns

 IMPORTANT REMINDER

EFC and IRS E-filing Shutdown for TY 2018-2020 - Individual Returns

IRS has announced its MeF (e-file) shutdown and cutover for Tax Year 2021. To ensure that all Form 1040 tax returns e-filed through the MeF system are processed in a timely manner, submissions must occur before IRS shuts down the system on Saturday, November 20, 2021, at 11:59 p.m. Eastern time.

In order to allow the states ample time for processing these returns, the Wolters Kluwer E-File Center (EFC) will stop accepting individual returns (both federal and state) for the current processing year on Tuesday, November 16th at 11:59 pm Eastern Time.

1040 E-file submissions for Tax Years 2018, 2019 and 2020 are included in this change. Because not all state agencies process returns in “real-time”, this schedule should allow sufficient time for agencies to post their acknowledgements for the WK EFC to pick up. 

After the shutdown occurs, the WK EFC will not accept individual returns (federal and/or state) until IRS comes back online in early January 2022. However, preparers can continue picking up acknowledgements through mid-December.

Important to Note:

• Tax Year 2018 returns will no longer be eligible for e-filing by the WK EFC after Tuesday, November 16th at 11:59 pm Eastern Time. Any acknowledgements must be retrieved by the user no later than mid-December for TY18 e-files. EFC for TY18 will not be available after mid-December 2021 to pick up these acks.

• Business Returns: Business returns are not affected by this schedule as IRS has not yet announced the business cutover schedule and will do so at a later time.

• Disaster Relief Extension to File: This shutdown will also affect taxpayers who received a disaster relief extension to file. If the disaster extended due date falls within this shutdown time frame, you must do one of the following:
• Submit the returns electronically before the shutdown begins.
• Hold the return and transmit it when the IRS reopens in January.
• File them on paper after the shutdown.  If filed on paper, applicable opt-out documentation may be necessary. Please consult the taxing authority guidelines on how to opt-out of electronic filing.

EFC and IRS E-filing Shutdown for TY 2018-2020 - Individual Returns

 IRS has announced its MeF (e-file) shutdown and cutover for Tax Year 2021. To ensure that all Form 1040 tax returns e-filed through the MeF system are processed in a timely manner, submissions must occur before IRS shuts down the system on Saturday, November 20, 2021, at 11:59 p.m. Eastern time.

In order to allow the states ample time for processing these returns, the Wolters Kluwer E-File Center (EFC) will stop accepting individual returns (both federal and state) for the current processing year on Tuesday, November 16th at 11:59 pm Eastern Time.

1040 E-file submissions for Tax Years 2018, 2019 and 2020 are included in this change. Because not all state agencies process returns in “real-time”, this schedule should allow sufficient time for agencies to post their acknowledgements for the WK EFC to pick up. 

After the shutdown occurs, the WK EFC will not accept individual returns (federal and/or state) until IRS comes back online in early January 2022. However, preparers can continue picking up acknowledgements through mid-December.

Important to Note:

• Tax Year 2018 returns will no longer be eligible for e-filing by the WK EFC after Tuesday, November 16th at 11:59 pm Eastern Time. Any acknowledgements must be retrieved by the user no later than mid-December for TY18 e-files. EFC for TY18 will not be available after mid-December 2021 to pick up these acks.

• Business Returns: Business returns are not affected by this schedule as IRS has not yet announced the business cutover schedule and will do so at a later time.

• Disaster Relief Extension to File: This shutdown will also affect taxpayers who received a disaster relief extension to file. If the disaster extended due date falls within this shutdown time frame, you must do one of the following:
• Submit the returns electronically before the shutdown begins.
• Hold the return and transmit it when the IRS reopens in January.
• File them on paper after the shutdown.  If filed on paper, applicable opt-out documentation may be necessary. Please consult the taxing authority guidelines on how to opt-out of electronic filing.

California Extended System Maintenance: 10/29-10/31

California Extended System Maintenance: Friday, October 29, 2021 between 5:30 PM PT to Sunday, October 31, 2021 9:30 PM PT.

On October 27, 2021 at 12:30 PM CT, the State of California Franchise Tax Board (FTB) announced it will be performing system maintenance beginning Friday, October 29, 2021 5:30 PM PT to Sunday, October 31, 2021 9:30 PM PT. All FTB IT services, including SWIFT, will be unavailable during this timeframe.

The State of California FTB recommends retrieving any outstanding acknowledgement and receipt files prior to the start of the maintenance window and holding all transmissions until after the maintenance timeframe is completed.

Should you experience any issues with transmission processing or receipt/acknowledge retrieval after the maintenance window timeframe or have any questions, please contact the California e-file coordinator at e-file.coordinator@ftb.ca.gov.

North Carolina Corporate Acknowledgement Delays

 On 10/21/21 at 11:39 AM EST, the North Carolina Department of Revenue (NCDOR) informed us they are experiencing technical difficulties with the Corporate gateway. According to NCDOR, submissions that were submitted between 10/12/21 – 10/15/21 are delayed. NCDOR uses the Electronic Postmark date when considering a return as timely filed.  No returns will be considered late if the Electronic Postmark date is on or before 10/15/21. NCDOR hopes to have all submissions acknowledged as soon as possible. If you have any additional questions, you should contact the NCDOR directly at nctaxefile@ncdor.gov or 919-814-1500.

2022 PTIN Renewal Season

Preparer Tax Identification Number (PTIN) renewal season is underway for all return preparers for 2022, as is participation in the Annual Filing Season Program (AFSP) for 2022.

The IRS Return Preparer Office RPO will be sending info to all PTIN holders over the next few days.

To promote Annual Filing Season Program participation, the IRS RPO has sent messages to non-credentialed PTIN holders.

More information about PTINs can be found at www.irs.gov/ptin and more info about AFSP is at www.irs.gov/tax-professionals/annual-filing-season-program.

Important information for 2021 TN 250 and TN 251 forms

Now that you have filed your 2020 TN 250, please remember that the Hall Income Tax is repealed as of January 1,2021.  As a result the TN 250 and TN 251 will not be available in the 2021 tax software.

For more information see:  Hall Income Tax

* Resolved * Ohio Individual MeF - Processing Delay 10/14/21 - 10/15/21

*** Resolved ***

The Ohio Department of Taxation has sent the following announcement.

Ohio has experienced some technical issues that delayed the processing of submissions and acknowledgements from the evening of 10/14 and forward. Our tech team is correcting the issue and expects to have the issue resolved later this evening(10/15). We will provide further updates as we receive them.

Extended Scheduled Maintenance

Scheduled Maintenance for October 22 - October 24, 2021

A planned maintenance event will take place from 10 p.m. Eastern, Friday, October 22nd through 10 p.m. Eastern, Sunday, October 24th.

During this time, access to product and support resources will be limited while we complete this work. The support site will display a maintenance page, not allowing login or use of any pages/tools.

Impacted Systems and How They May Affect You:

• Electronic Filing Center: You will be unable to transmit returns or receive acknowledgements.
• TaxWise Online and InterviewPLUS: access to the web application will not be available.
• TaxWise Solution Center and COM site: support tools and information will not be available
• Online Ordering: 2021 renewals and new product purchases will not be available
• PPR Ordering: the PPR system will not be available for orders or downloads 

Minnesota MeF Scheduled Maintenance

 The Minnesota Department of Revenue has sent the following announcement.

e-Services and other online services unavailable Friday, October 8

Due to scheduled maintenance, our e-Services system and other online services will be unavailable Friday, October 8 from 4:30 p.m. to midnight. This includes Where’s My Refund? and the Property Tax Refund Online Filing System. Regular deadlines for filing and paying taxes still apply. Please plan accordingly. We apologize for the inconvenience.

*Resolved* New York Reject Code R0170

***Resolved***

On 10/8/21 at 3:37 PM, we received communication from the State of New York (NYS) reporting a temporary fix which resolved the R0170 reject. According the NYS, you can now resume transmitting returns, and NYS will resume pulling from the IRS previously transmitted returns. For returns in Rejected status for R0170, recreate the e-file and retransmit the return. Returns already in Transmitted status will be acknowledged when NYS pulls the files and processes them.

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***Update***

On 10/6/21 at 3:15 PM EST we received communications from the State of New York (NYS) with an updated status about eFile returns. Currently, NYS is not pulling e-file returns due to an issue with the SSNValidation Status between the NYS and the IRS. This issue results in rejected returns with a Reject code of R0170. We will update you as we receive new information from the State of New York or the IRS. Please hold these returns and do not re-submit them until we receive additional guidance.

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We are aware of an issue impacting 1040 New York State returns. We have contacted The State of New York who is examining the issue. Please hold these returns and do not re-submit them until we receive additional guidance from the State of New York. 

Error Message:  R0170 - The primary SSN/ITIN was either invalid, or could not be verified

*Resolved* Intermittent Slowness

Service has been restored.  

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On October 4, 2021 at 8:15 AM EST, some TaxWise customers are experience intermittent slowness including e-filing and online check printing.

Thank you for your patience as our team investigates.

Social Security Administration announces important changes for filing 2021 W2s

 

• Due Date
• Tax Year 2021 wage reports must be filed with the Social Security Administration by February 1, 2022.

• The Taxpayer First Act mandates electronic filing of IRS forms including W-2s.
• In 2022* if you send 100 or more W-2s to SSA, you have to file them electronically
• In 2023* that limit is lowered to 10
• See the Taxpayer First Act page for more information including options to file for free
• See IRS Taxpayer First Act Provisions, IRS Modernization, Electronic Filing of Returns (Section 2301) 

               *Pending IRS issuing final regulations.

• Changes have been made to the Wage File Upload process.
• Files will be processed in real-time, and you will get results right away of either Success or Reject.
• If your file is rejected, the SSA will now provide the errors right on the screen.
• You will not receive a Wage File Identifier (WFID) until you have fixed the errors, resubmitted the file, and it passes all edits.
• For more information
• Read the tutorial
• View the infographic
• View the video
• Read the training package

Note:  Files created with Payroll Compliance Reporting or W2/1099 are in EFW2 format.

Tax Tip 2021-145: Here’s what tax professionals should do after a data theft or loss

If a tax pro or their firm is the victim of data or information theft, they must deal with it thoroughly and efficiently. Here are some actions they should take immediately to help minimize damage and protect against future data and theft or losses.

Contact the IRS and law enforcement:

• Internal Revenue Service – The tax preparer should report client data theft to their local Stakeholder Liaison. Stakeholder Liaison will notify IRS Criminal Investigation and others within the agency on the tax professional’s behalf. Speed is critical. If reported quickly, the IRS can take steps to block fraudulent returns in clients’ names.
• Federal Bureau of Investigation or the United States Secret Service – the preparer should contact a local office of either the FBI or the USSS.
• Local police – The taxpayer should contact police to file a report on the data breach.

Contact states in which the tax professional prepares state returns:

• Any breach of personal information could have an adverse effect on the victim’s tax accounts with the states as well as the IRS. To help tax professionals find where to report data security incidents at the state level, the Federation of Tax Administrators has created a special page with state-by-state listings.
• The preparer should contact the State Attorneys General for each state in which the tax professional prepares returns.

Contact experts:

• Security expert – Tax preparers should consult an expert who can help determine the cause and scope of the breach, to stop the breach, and to prevent further breaches from occurring.
• Insurance company – The preparer should report the breach to their insurance company and to check if the insurance policy covers data breach mitigation expenses.
• Federal Trade Commission – Preparers and other businesses can go to the FTC for guidance. For more individualized guidance, preparers can contact the FTC at idt-brt@ftc.gov.
• Credit and identity theft protection agency – Certain states require that preparers offer credit monitoring and ID theft protection to victims of ID theft.
• Credit bureaus – Preparers should notify them if there is a compromise and clients may seek their services.

Contact clients:

Preparers should send an individual letter to all victims to inform them of the breach, but they should work with law enforcement on when to send the letter.

Share this tip on social media -- #IRSTaxTip: Here’s what tax professionals should do after a data theft or loss. https://go.usa.gov/xMESn

Client Accounting Suite/Premier (CAS/P) 20.6 is available

The 20.6 version of CAS is now available from the Solution Center or via the auto-update feature in CAS. It includes the following regulatory updates.

Regulatory Updates

The following regulatory information is now available for Client Accounting Suite and Client Accounting Suite Premier:

• Federal Forms
• 941 Updates
• Line 13a includes the vendor deposit made for the selected quarter.
• Line 15 calculates the Overpayment for the selected quarter.
• 2021 State Withholding Rates - The following state withholding calculations have been updated for 2021:
• Idaho
• Kansas
• Ohio

Scheduled Updates

• November 2021 - Client Accounting Suite 21.0 - Annual Release
• December 2021 - Client Accounting