RESOLVED: Texas - Delayed Acknowledgements

This issue has been Resolved as of April 14th.

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Starting on Sunday, April 10 at 12:30 PM ET, some CCH Axcess Tax, CCH ProSystem fx, TaxWise and ATX customers began seeing a transmitted status when using e-file on Texas returns but are reporting delayed acknowledgements.

This is a known issue with the state of Texas. Thank you for your patience as our team investigates with the state of Texas.

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.

California – Reject Code CA reject F565-060 for Business Returns

Update - April 7 2022:

The California Tax Service Center updated their schema on 3/22. The TaxWise team is working on a module update to allow users to enter a LLC Temp Number, if the partnership does not have a SOS number. We will continue to provide updates until the module is available.

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March 29, 2022

The TaxWise team has been made aware of an issue affecting California Business Returns.

Customers filing a State Return without a California Secretary of State(SOS) File Number will experience a rejection notice: CA reject F565-060.

The TaxWise team is working with the California Tax Service Center to resolve the issue.

In the meantime, please hold filing these California State business returns until the issue has been resolved.

Massachusetts Fiduciary Returns Reject

Please be aware that Massachusetts Fiduciary Returns are being rejected for not having the correct values transmitted in the e-file for MA 2, Schedule B, Lines 12b, 12c, 21b & 21c. 

A fix is not planned to be released until Massachusetts Business Module version 4 is released sometime after April 25, 2022. 

Recommendation:  We recommend that if you have a return that utilizes MA 2, Schedule B that you put the return on extension until MA Business Module version 4 is released.

Reminder - 1st Quarter Estimated Payments due 4/18

The Internal Revenue Service today reminds those who make estimated tax payments such as self-employed individuals, retirees, investors, businesses, corporations and others that the payment for the first quarter of 2022 is due Monday, April 18.

The 2022 Form 1040-ES, Estimated Tax for Individuals, can help taxpayers estimate their first quarterly tax payment.

RESOLVED: Important Information Concerning Form 8839 Qualified Adoption Expenses

Update: IRS has updated their schema as of March 21st.  Returns with an 8839 can be summitted.  

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We are aware of an issue with the IRS schema concerning the maximum adoption credit allowed on Form 8839 Qualified Adoption Expenses.  Per the form and instructions, the maximum allowable credit is $14,440; however, the IRS schema has this value set as $14,400.  Any e-filed return that includes the maximum $14,440 will receive IRS Rejection X0000-005.  

At this time, please hold these returns until the IRS releases the next schema update which is tentatively scheduled for mid-March.

Note:  TaxWise will display a validation error if you attempt to create the e-file for these returns.

Resolved: Billing for e-signature temporarily paused

The issue with e-signature billing has been resolved and e-signature transactions since March 7th will be included on your next invoice. As such, you may see a larger than normal number transactions due to the pause in billing.   

Reminder: Usage of e-signature in TaxWise Online, TaxWise Desktop and ATX has not been impacted.

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On Monday, March 7 at 12:00 PM ET, we identified an error in the billing function of TaxWise Desktop and will complete unscheduled maintenance. As a result, e-signature billing for TaxWise Online, TaxWise Desktop and ATX will be temporarily unavailable. Once the billing maintenance has been completed, all billing events will be invoiced accordingly.

Usage of e-signature in TaxWise Online, TaxWise Desktop and ATX is not impacted.