IRS Reject F2441-027 for Form 2441

Customers submitting an individual return containing Form 2441, Child and Dependent Care Expenses, may have encountered the following rejection message from the IRS.

“F2441-027 If Form 2441 is present in the return, then Schedule 3 (Form 1040) 'CreditForChildAndDepdCareAmt' and/or 'RfdblCrForChildAndDepdCareAmt' will have a non-zero value. ”

The IRS states that this rejection was in error.  Please recreate and retransmit any returns that received this rejection message.

Utah TC-65 Partnership Return Rejection Message due to Missing Bank Information

 Utah has announced that they have been rejecting partnership returns in error using the four rejection messages below.  They will release a fix for this issue later tonight.  Please hold any Utah TC-65 returns and do not retransmit any rejected returns until 12 Noon EST on March 22nd.

Rejection messages:

• 65_21_180 Return Payment Amount : Value must be Positive
• 65_21_181 Return Payment Account Holder Name : Must be Provided
• 65_21_182 The requested payment date must be provided and the date cannot be more than 130 days in the future
• 65_21_184 Return Payment Not IAT : Payment must not be an international ACH transaction

Arizona - Update on Prop 208 Ruling

Guidance for Taxpayers Following Prop 208 Ruling

Phoenix, AZ—The Arizona Department of Revenue is issuing the following guidance for taxpayers who are affected by the recent Maricopa County Superior Court ruling striking down the surcharge imposed by Proposition 208.

Taxpayers Who Have Already Filed Don’t Need to Amend Their Returns

Although this late-breaking change has occurred during tax season, ADOR is working alongside its tax software vendor partners to amend its individual income tax forms and tax administration system in response to the law change. Due to tax law changes made by the Legislature in 2021, however, the change will not impact an individual’s overall income tax liability. As a result, taxpayers who file their Arizona individual income tax returns using current forms and instructions will not need to amend their returns. The Department will hold these returns and process them correctly once it has modified its tax system to remove the surcharge and amend the tax bracket rates. At that time, ADOR will automatically adjust the returns to provide for the correct distribution of monies.

What If I Haven't Filed?

As an Arizona taxpayer, proceed to file your return using the current form and following the current instructions. Returns will be due on Monday, April 18, 2022, unless you request an extension on or before that date.

As mentioned above, ADOR is working as quickly as possible to revise individual income tax forms and assist its tax software vendor partners in changing their individual tax forms and tax brackets. The Department will then apply the changes to your filed return with no additional action required from you. As previously stated, the changes will not impact an individual's overall tax liability.

More background and information can be found here.

IRS Modernized e-File (meF) Extended Scheduled Maintenance

 The IRS has announced an extended scheduled maintenance window on Sunday, March 20, 2022 from 12:01 AM until 11:00 AM EST.  During this time, the IRS will be unable to receive transmitted e-files. 

You will still be able to transmit your returns to us; however, any Federal or State returns transmitted between Saturday, March 19, 2022, 11:59 PM and Sunday, March 20, 2022, 12 Noon EST will be held at the Electronic Filing Center (EFC) until the IRS systems are back online.

IRS Reject F7004-905-03 for Form 7004-Business Extension

 Customers submitting an extension for business returns may encounter the following rejection code from IRS.

“F7004-905-03 In Form 7004, Line 1, 'ExtensionReturnCd' the return for which the extension is filed must match the return type established with the IRS for the EIN.
/efile:Return/efile:ReturnData/efile:IRS7004/efile:ExtensionReturnCd”

The Form 7004 form code for the return associated with this application must match the IRS database.  If necessary, the type of return the extension is to be filed for can be updated on Form 7004 line 1 to match the code the IRS has on file.

The form code can be found on the EIN letter the client received form the IRS.  The customer  can also Contact the Internal Revenue Service at 1-866-255-0654 for additional information on the correct form code.

Important: Outstanding acknowledgements (acks) from March 13th are available

 Outstanding acks from March 13th have now posted to your mailbox. There is no need to contact our SVE team to check on the status of these acknowledgements. 

You can access these acks in multiple ways:

• TaxWise: Click Communications > Get Acks, Mail, and Updates feature.  
• TaxWise Online:  From the e-Filing page, click View Acknowledgement 
• TaxWise Solution Center:  Click Return Query > login as the Admin user (if prompted).

*Resolved* Massachusetts Reject F2-039 for MA 2

*Resolved*

The Massachusetts Department of Revenue has announced that this issue has been resolved.  Please resubmit any returns that were incorrectly rejected.

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The Massachusetts Department of Revenue has announced that they are incorrectly rejecting return with Reject F2-039.  They are working to resolve this issue as quickly as possible. Customers who file a MA 2 that includes a Schedule B will receive the following Reject Code, F2-039:

“The Form 2, Schedule B, Line 23 amount has been calculated incorrectly'.

Please hold these returns until Massachusetts releases a fix for the issue.  We will update this post when we receive an update from Massachusetts.