Illinois Department of Revenue Holding Refunds until March 1

Illinois Security Measures Enacted; IL-1040 Refund Release Date Impacted. The Illinois Department of Revenue is taking additional steps to protect Illinois taxpayers from identity theft and fraud. To ensure the security and confidentiality of taxpayer information, the Department has initiated a review process to combat against fraudulently filed returns. As a result of the new security measures, refunds may take longer to process this year than in previous years.

For more information, please visit the Illinois Department of Revenue's Refund Delay FAQ page: http://www.revenue.state.il.us/individuals/RefundDelay.htm

NC Begins Processing Efiles Jan 28th

The North Carolina Department of Revenue (NCDOR) will officially open the
2016 tax filing season and begin processing individual income tax returns on Jan. 28. The Internal
Revenue Service began accepting returns on Jan. 19.

EROs began filing NC returns along with federal returns Jan. 19th, but NC will not begin processing those efiles until Jan 28th.

Acknowledgements will not be seen until February 1^st, at the earliest, and anticipated refunds will follow afterwards.

Refer to this NC DOR website for updated information and full details.

IRS rejects 361, 370, 371, 372 - Hold the returns

IRS has asked that EROs hold returns rejected for the following efiles until IRS updates their business rules. 

For 1040 Returns

F1040-370-03

If Form 1040, Line 51 'RtrSavingsContributionsCrAmt' has a non-zero value and Line 1 checkbox "Single" or Line 3 checkbox "Married filing separately" or Line 5 checkbox "Qualifying widow(er) with dependent child" is checked (element 'IndividualReturnFilingStatusCd' has a value of 1, 3 or 5), then Line 37 'AdjustedGrossIncomeAmt' must not be greater than 30000 

F1040-371-03

If Form 1040, Line 51 'RtrSavingsContributionsCrAmt' has a non-zero value and Line 4 checkbox "Head of household" is checked (element 'IndividualReturnFilingStatusCd' has the value 4), then Line 37 'AdjustedGrossIncomeAmt' must not be greater than 45000 

F1040-372-03 

If Form 1040, Line 51 'RtrSavingsContributionsCrAmt' has a non-zero value and Line 2 checkbox "Married filing jointly" is checked (element 'IndividualReturnFilingStatusCd' has the value 2), then Line 37 'AdjustedGrossIncomeAmt' must not be greater than 60000

For 1040A Returns

F1040A-370-03

If Form 1040A, Line 34 'RtrSavingsContributionsCrAmt' has a non-zero value and Line 1 checkbox "Single" or Line 3 checkbox "Married filing separately" or Line 5 checkbox "Qualifying widow(er) with dependent child" is checked (element 'IndividualReturnFilingStatusCd' has a value of 1, 3 or 5), then Line 21 'AdjustedGrossIncomeAmt' must not be greater than 30000. 

F1040A-371-03

If Form 1040A, Line 34 'RtrSavingsContributionsCrAmt' has a non-zero value and Line 4 checkbox "Head of household" is checked (element 'IndividualReturnFilingStatusCd' has the value 4), then Line 21 'AdjustedGrossIncomeAmt' must not be greater than 45000. 

F1040A-372-03

If Form 1040A, Line 34 'RtrSavingsContributionsCrAmt' has a non-zero value and Line 2 checkbox "Married filing jointly" is checked (element 'IndividualReturnFilingStatusCd' has the value 2), then Line 21 'AdjustedGrossIncomeAmt' must not be greater than 60000. 

F1040-361-04 – Deals with Form 5695 (Residential Energy Credit)

Currently there is no ETA for IRS to correct these Business Rules.

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.