*Resolved* State News: Alabama MeF Acknowledgement Delay

*Resolved*

We have received the following message from the Alabama Department of Revenue Services. The processing delay issue for MeF returns has been resolved.  We have sent out acknowledgements to the backlogged submissions received during the delay timeframe.

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Please review the below message from the Alabama Department of Revenue Services.

We are aware of issues with processing returns/acknowledgments.  Our developers are working diligently to resolve the issue as soon as possible. We apologize for any inconvenience. 

State News: Alabama MeF Acknowledgement Delay

Please review the below message from the Alabama Department of Revenue Services.

We are aware of issues with processing returns/acknowledgments.  Our developers are working diligently to resolve the issue as soon as possible. We apologize for any inconvenience. 

EFC Reject 38 for Alabama, Colorado, and Georgia Business

If you have received an EFC Reject 38 on Alabama, Colorado, and Georgia C Corp, S Corp, and Partnership returns this is because these states have not been approved yet by the State agencies.

A new Alabama and Georgia module will be delivered to put diagnostics in place to prevent eFile creation and then another module release will enable eFile support once agency approval is obtained.

Additional updates will be provided as the new modules become available.

State News: Alabama Rejection for Form ET-1 Apportionment Factor

Please review the important information below that we received from the Alabama Department of Revenue concerning Form ET-1.

We are aware of  a rejection issue with the calculation of the apportionment factor on Form ET-1. Our teams are working to get this issue corrected as soon as possible.  Please advise your clients to paper file with the rejection notice included.

As more information is made available, we will update this blog post.

Important Information Concerning Alabama Paper-filed Returns

The Alabama Department of Revenue is reminding all taxpayers to not mail in AL 40 and AL  40-NR returns that contain a watermark.  Watermarked returns are for the Alabama taxpayers to keep for their records ONLY.  Any returns mailed to the Alabama DOR with a watermark are invalid returns. 

The preferred method of filing is electronic filing.  Alabama is approved for electronic filing.

Alabama - Federal Income Tax(FIT) Worksheet revision

Due to the a recent legislation change, the Alabama Department of Revenue recently revised the Federal Income Tax (FIT) Deduction worksheet. The corresponding software changes were recently released on March 29th. The legislation changes resulted in a new Part 2 section being added to the FIT worksheet. Per the new schema and instructions, Part 2 was optional if it did not apply to the taxpayer. However, the Alabama Department of Revenue has been rejecting returns with the following rejection codes, indicating that Part 2 must be sent all the time.

• AL40-FIT-800
• AL40-FIT-810
• AL40-FIT-830

In addition, the Alabama Department of Revenue has requested that TaxWise automatically calculate the 2020 federal credit amounts included in Part 2 of the FIT worksheet.

In the meantime, the 2020 federal credit amounts can be manually calculated and entered on the worksheet. However, if you wish to leave the 2020 federal credit amounts blank, the state is requesting that a value of 9999999999 be entered on the FIT worksheet, Part 2, Line 3.

We are in the process of updating the software to automate these 2020 federal tax calculations along with the revised e-file business rules for Part 2, with an expected release date by April 30th.

Recommendation:  If you have clients impacted by the FIT worksheet legislation changes and/or the above rejection codes, we recommend to file an Alabama extension and pay any associated taxes by April 18th.